Question

Exercise 6-05 Ayayai Corp. uses a periodic inventory system. Its records show the following for the month of May, in which 69 units were sold. Units Unit Cost Date May 1 32 15 Explanation Inventory Purchase Purchase Total Total Cost $256 225 430 $911 24 Calculate the weighted average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted average unit costs LINK TO TEXT LINK TO VIDEO Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 s Click if you would like to Show Work for this question: Open Show Work

Answer 1

Weighted average unit cost = $9.110

	FIFO	LIFO	Weighted Average
Ending Inventory	$                     310	$                       248	$                 282

Working

Average Cost of Inventory
Units	(A)	100
Total Cost	(B)	$ 911
Average Cost	(C=B/A)	$                   9.110

.

FIFO
Total Units Available for sale		100
Units Sold		69
Closing Stock in Units		31
Valuation
Ending Inventory	31	@	$             10.00	$ 310
Value Of Ending Inventory				$                  310
Cost of Goods sold				$                  601
LIFO
Total Units Available for sale		100
Units Sold		69
Closing Stock in Units		31
Valuation
Ending Inventory	31	@	$               8.00	$ 248
Value Of Ending Inventory				$                  248
Cost of Goods sold				$                  663
Weighted Average method
Total Units Available for sale		100
Units Sold		69
Closing Stock in Units		31
Valuation
Ending Inventory	31	@	$               9.11	$                  282
Value Of Ending Inventory				$                  282
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$                  629