Question

Date Explanation Units Unit Cost Total Cost June 1 Inventory 123 $ 615 Purchases 2,106 Purchases 1,358 Inventory Calculate weighted average unit cost. (Round answer to 3 decimal places, e.g. 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 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory The cost of goods sold

Answer 1

June. 1 June. 12 June. 23 Total Available for sale Unit Unit cost Total cost 123 $5 $ 615 351 $6 $2,106 194 $7 $1,358 668 $4,079 Weighted average unit cost = $4,079/668 = $6.106

The cost of ending inventory The cost of goods sold FIFO $1,436 $ 2,643 LIFO Average cost $1,119 $ 1,264 $2,960 $2,815

Working notes:

No. of unit in ending inventory = 207 No. of unit sold = 668-207 = 461 FIFO: Ending inventory Unit Unit cost Total cost Purchases Unit Unit cost Total cost 123 $5 $ 615 351 $6 $2,106 194 $7 $1,358 668 $ 4,079 Cost of goods sold Unit Unit cost Total cost 123 $5 $ 615 338 $6 $2,028 June. 1 June. 12 June. 23 Total 13 194 207 $6 $7 $ 78 $1,358 $ 1,436 461 $ 2,643 LIFO: Cost of goods sold Unit Unit cost Total cost Purchases Unit Unit cost Total cost 123 $5 $ 615 351 $6 $2,106 194 $7 $1,358 668 $ 4,079 Ending inventory Unit Unit cost Total cost 123 $5 84 $6 $ 504 June. 1 June. 12 June. 23 Total 267 194 $ $7 $1,602 $1,358 $ 2,960 461 $ 1,119 Average cost method: Cost of ending inventory = 207x$6.106 = 1,264 Cost of goods sold = 461 x $6.106 = 2,815