Question

Exercise 6-09 al,a2, b Oriole Company reports the following for the month of June. Units Unit Cost Total Cost $5 June 1 12 350 500 350 $ 1,750 3,000 Inventory Purchase Purchase Inventory 6 23 7 2,450 30 160 Calulate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.) Weighted Average Unit Cost $ LINK TO TEXT Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to o decimal places, e.g. 1,250.) The ending inventory $ The cost of goods sold $ LINK TO TEXT Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending inventory is than FIFO $ and than LIFO $ In contrast, cost of goods sold is than FIFO $ and than LIFO $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

1) Cost of goods available for sale = 1750+3000+2450 = 7200

Units available for sale = 350+500+350 = 1200

Weighted average cost per unit = 7200/1200 = 6 per unit

2) Ending inventory = 160*6 = 960

Cost of goods sold = (1200-160)*6 = 6240

3) Ending inventory is Lower than FIFO $160 and higher than LIFO $160

In contrast, Cost of goods sold is higher than FIFO $160 and Lower than LIFO $160