Question

Spotter Corporation reported the following for June in its periodic inventory records, Units 15 Date Description June 1 Beginning 11 Purchase 24 Purchase 30 Ending Unit Cost $ 9.80 10.80 12.80 Total cost $147.00 604.80 371.29 Required: 1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO. (6) LIFO, and (c) weighted average cost methods. (Do not round your intermediate calculations. Round "Weighted Average Cost" to 2 decimal places.) Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average Cost 2. Which of the three methods will lead to reporting the highest net income? FIFO LIFO Weighted Average Cost

Answer 1

FIFO Date Jume 1 11 24 30 Description Units Beginning is Purchase 56 Purchese 29 Ending 33 Rote 89.80 10.80 1280 coer of Goods sold 2 Opening Her chese - Clowing g 15 +0(56729) – 33 3 67 umih Cost of of finding Anventory sex co (29x12.80) + (33-29)* 10.80 414.40 coure Goods wold 2 (15 x 9.80) + (67-15)x 10.80 708.60 Lifo coor Of Ending Sover tory un (159x980) +°63-15)x ony $341.40 S Cost A Goods vold - (29 X 12.80) +(67–29) X10-80% Co $781.60

Weighted Average Cour Weighted Average 147+604 .80 +371.20 Rake 15+ 56+29 2 1123 100 cover of Emeling foven Hory 2 A . $11.23 pere unit 33 * $ 11:23 $ 370-59 cour of Goods wolde 67 x $ 11.232 $ 752.417 Tomcustom coor Erding Anvern loy COGS FIFO 37.20 $414.40 $708.60 $ 341.40 $ 381.60 Weighted Average $370.59 $752.41 LIFO 2. FIFO Explomatiom As in FIFO me mod coor of goods sold is lowear and closing Anventory is maximum. so, this will give highest ner nome