Question

Problem 6-03A a, b1-b2, c (Part Level Submission) (Video) Crane Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 400 units at $24 Sept. 4 300 units at $33 July 20 220 units at $28 Dec. 2 100 units at $30 980 units were sold. Crane Company uses a periodic inventory system.

(a) Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale $Enter the cost of goods available for sale in dollars Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used

(b1) Your answer is correct. Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 1.250.) Average cost per unit $Enter the average cost per unit in dollars Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used

(b2) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 1,250.) FIFO LIFO AVERAGE-COST The ending inventory $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount The cost of goods sold $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount Click if you would like to Show Work for this question: Open Show Work

Answer 1

Requirement (a)

The cost of goods available for sale= $31,860

Requirement (b1)

Average cost per unit = $27 per unit

Requirement (b2)

	FIFO	LIFO	Weighted Average
Ending Inventory	$                 6,300	$                   4,160	$             5,400
Cost of Goods Sold	$               25,560	$                 27,700	$           26,460

Working

	Units	Cost per unit	value
Beginning Balance	160	$                   20.00	$ 3,200
Purchases
	400	$                   24.00	$ 9,600
	220	$                   28.00	$ 6,160
	300	$                   33.00	$ 9,900
	100	$                   30.00	$ 3,000
Total	1180		$ 31,860

.

Average Cost of Inventory
Units	(A)	1180
Total Cost	(B)	$ 31,860
Average Cost	(C=B/A)	$                   27.00

.

FIFO
Total Units Available for sale		1180
Units Sold		980
Closing Stock in Units		200
Valuation
Ending Inventory	100	@	$             30.00	$ 3,000
	100	@	$             33.00	$ 3,300
Value Of Ending Inventory				$ 6,300
Cost of Goods sold				$ 25,560
LIFO
Total Units Available for sale		1180
Units Sold		980
Closing Stock in Units		200
Valuation
Ending Inventory	160	@	$             20.00	$ 3,200
	40	@	$             24.00	$ 960
Value Of Ending Inventory				$              4,160
Cost of Goods sold	31860 minus 4160			$            27,700
Weighted Average method
Total Units Available for sale		1180
Units Sold		980
Closing Stock in Units		200
Valuation
Ending Inventory	200	@	$             27.00	$              5,400
Value Of Ending Inventory				$              5,400
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$            26,460