Question

Cheyenne Corp.reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory $615 12 Purchases 2.106 23 Purchases 1,358 30 Inventory Calculate weighted average unit cost. (Round answer to 3 decimal places, es. 5.125.) Weighted average unit cost $ e Textbook and Media Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO and average-cost. (Round answers to decimal places, eg 125) FIFO LIFO Average-cost The cost of the ending inventory $ The cost of goods sold

Answer 1

Solution 1:

Weighted average unit cost = Cost of goods available for sales / Units available for sales

= ($615 + $2,106 + $1,358) / (123+351+194)

= $6.106 per unit

Solution 2:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	123	$5.00	$615	123	$5.00	$615.00	0	$5.00	$0.00
Purchases:
12-Jun	351	$6.00	$2,106	338	$6.00	$2,028.00	13	$6.00	$78.00
23-Jun	194	$7.00	$1,358	0	$7.00	$0.00	194	$7.00	$1,358.00
Total	668		$4,079	461		$2,643.00	207		$1,436.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	123	$5.00	$615	0	$5.00	$0.00	123	$5.00	$615.00
Purchases:
12-Jun	351	$6.00	$2,106	267	$6.00	$1,602.00	84	$6.00	$504.00
23-Jun	194	$7.00	$1,358	194	$7.00	$1,358.00	0	$7.00	$0.00
Total	668		$4,079	461		$2,960.00	207		$1,119.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	123	$5.00	$615
Purchases:
12-Jun	351	$6.00	$2,106
23-Jun	194	$7.00	$1,358
Total	668	$6.106	$4,079	461	$6.106	$2,815	207	$6.106	$1,264