Question

You are provided with the following information for Concord Inc. for the month ended June 30, 2019. Concord uses the periodic system for inventory.

Date				Description		Quantity		Unit Cost or Selling Price
June		1		Beginning inventory		43		$41
June		4		Purchase		137		45
June		10		Sale		115		70
June		11		Sale return		17		70
June		18		Purchase		56		47
June		18		Purchase return		8		47
June		25		Sale		67		75
June		28		Purchase		35		51

(a1)Calculate weighted-average cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)

Weighted-average cost per unit

$

(a2)

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)

		LIFO		FIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$
Gross profit		$		$		$

Answer 1

(A1) weighted average cost per unit

Date	Description	Quantity	unit cost	total cost
June 1	beginning inventory	43	41	1,763
June 4	purchase	137	45	6,165
June 18	purchase	56	47	2,632
June 18	Purchase return	(8)	47	(376)
June 28	purchase	35	51	1,785
	Total	263		11,969

Weighted average cost per unit= 45.51 per unit

A2) 1 ) lifo method

COGS Ending inventory

Date	description	quantity	quantity	per unit cost	total cost	quantity	per unit cost	total cost
June 1	beginning inventory					43	$ 41	$ 1,763
June 4	Purcahse	137				43	41	1,763
						137	45	6,165
June 10	sales	115	115	45	5,175	43	41	1,763
						22	45	990
June 11	Sales return	17	(17)	45	(765)	43	41	1,763
						39	45	1,755
June 18	purchase	56				43	41	1,763
						39	45	1,755
						56	47	2,632
June 18	Purcahse return	8				43	41	1,763
						39	45	1,755
						48	47	2,256
June 25	sales	67	48	47	2,256	43	41	1763
			19	45	855	20	45	900
June 28	purchase	35				43	41	1763
						20	45	900
						35	51	1785
	Total		165		7,521	98		4,448

Total sales

Date	description	quantity	sale price	total sales
June 10	sales	115	70	8,050
June 11	sales return	(17)	70	(1,190)
June 25	sales	67	75	5,025
	Total	165		11,885

Ending inventory= 4,448

Cost of goods sold=7,521

Gross profit = sales - COGS = 11,885-7,521= 4,364

A2)2 FIFO Method

Date	description	quantity	quantity	per unit cost	total cost	quantity	per unit cost	total cost
June 1	beginning inventory					43	41	1,763
June 4	purchase	137				43	41	1,763
						137	45	6,165
June 10	sale	115	43	41	1763
			72	45	3,240	65	45	2,925
June 11	sales return	17	(17)	45	(765)	82	45	3,690
June 18	purchase	56				82	45	3,690
						56	47	2,632
June 18	purchase return	(8)				82	45	3,690
						48	47	2,256
June 25	Sale	67	67	45	3015	15	45	675
						48	47	2,256
June 28	purchase	35				15	45	675
						48	47	2,256
						35	51	1,785
	Total		165		7,253	98		4,716

Ending inventory= 4,716

Cost of goods sold=7,253

Gross profit= 11,885 - 7,253= 4,632

Average cost

Ending inventory = 98 units × 45.51= 4,459.98

Cost of goods sold= 165 units × 45.51= 7,509.15

Gross profit= 11,885-7509.15 = 4,375.85