Question

Sandhill Co, uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cost $5 June 1 Inventory 140 Total Cost $ 700 2,100 1,610 Purchases Purchases Inventory Calculate weighted average unit cost. (Round answer to 3 decimal places, e.. 5.125.) Weighted average unit cost $

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer - Part 1) - Weighted average cost = Total cost of goods available for sale / toal units = (700+2100+1610)/(140+350+230) = $6.125 Thus the correct answer is = weighted average cost = $6.125 o Part 2) 1 FIFO Cost of ening inventory 2 = no. of units in ending inventory * cost as per FIFO 3 = (230*7)+(20*6) 4 = $ 1730 5 FIFO Cost of goods sold 6 = total goods avaiilable for sale - ending ending inventory 7 = (700+2100+1610) - 1730 O LIFO Cost of ening inventory 1 = no. of units in ending inventory * cost as per LIFO 2 = (140*5)+(110*6) 3 = $ 1360

LIFO Cost of goods sold 1 = total goods avaiilable for sale - ending ending inventory = (700+2100+1610) -1360 = $ 3050 Average cost Cost of ending inventory = no. of unit in ending inventory * average cost = 250*6.125 = $ 1531 average cost cost of goods sold =(140+350+230-250)*6.125 = $ 2879 Thus the final answer is FIFO Cost of ending inventory Cost of goods sold LIFO 1730 2680 Average Cost 1360 1531 3050 2879