Question

Exercise 6-17 a1-a3 (Video) Marigold Corp. reports the following for the month of June. Unit Cost Date Explanation Units Total Cost June 1 230 $8 Inventory Purchase 12 460 9 $1,840 4,140 3,450 23 Purchase 345 10 30 Inventory 115 Assume a sale of 506 units occurred on June 15 for a selling price of $11 and a sale of 414 units on June 27 for $12. Your answer is correct. Calculate cost of goods available for sale. The cost of goods available for sale 9430 SHOW SOLUTION SHOW ANSWER LINK TO TEXT vy. SIMILA Link 1 Your answer is partially correct. Try again. hann

only the second part where the answers are red I dont understand

Answer 1

Required 2 :
	FIFO	LIFO	Moving-Average Cost
The Cost ending Inventory	$ 1,150	$ 920	$ 1,097
The Cost of goods sold	$ 8,280	$ 8,510	$ 10,934

Explanation

FIFO :
Date	Purchases	Sales	Balances
Jun-01	Beginning Balances		230 U * $8 = $ 1,840
Jun-12	460 U *$9 = $4,140		230 U * $8 = $ 1,840
			460 U *$9 = $4,140
Jun-15		230 U * $8 = $ 1,840
		276 U *$9 = $ 2,484	184 U*$9 = $ 1,656
Jun-23	345 U *$10 = $ 3,450		184 U*$9 = $ 1,656
			345 U *$10 = $ 3,450
Jun-27		184 U*$9 = $ 1,656
		230 U *$10 = $ 2,300	115 U *$10 = $ 1,150
Jun-30		$ 8,280	$ 1,150
Here , Cost of Goods sold = $ 1,840 + $2,484 +$1,656 + $2,300 = $ 8,280
The Cost ending Inventory for 115 Units is $ 1,150
LIFO
Date	Purchases	Sales	Balances
Jun-01	Beginning Balances		230 U * $8 = $ 1,840
Jun-12	460 U *$9 = $4,140		230 U * $8 = $ 1,840
			460 U *$9 = $4,140
Jun-15		460 U *$9 = $4,140
		46 U * $8   = $ 368	184 U * $8 = $ 1,472
Jun-23	345 U *$10 = $ 3,450		184 U * $8 = $ 1,472
			345 U *$10 = $ 3,450
Jun-27		345 U *$10 = $ 3,450
		69 U * $8     = $ 552	115 U * $8 = $ 920
Jun-30		$ 8,510	$ 920
Here , Cost of Goods sold = $ 4,140 + $368 + $ 3,450 +$ 552 = $ 8,510
The Cost ending Inventory for 115 Units is $ 920
Moving Average :
Date	Purchases	Sales	Balances
Jun-01	Beginning Balances		230 U * $8 = $ 1,840
Jun-12	460 U *$9 = $4,140		230 U * $8 = $ 1,840
			460 U *$9 = $4,140
			690 U @$8.667 = 5,980    {$5980/690U = $ 8.667 }
Jun-15		506 U * $8.667 = $ 6,986	184 U*$ 8.667 = $ 1,595
Jun-23	345 U *$10 = $ 3,450		184 U*$ 8.667 = $ 1,595
			345 U *$10          = $ 3,450
			529 U*@ 9.537     = 5,045 {$5,045 / 529 U = $ 9.537}
Jun-27		414 U *$9.537 = $ 3,948	115 U *$9.537 = $ 1097
Jun-30		$ 10,934	$ 1097
Here , Cost of Goods sold = $ 6,986+ $3,948 = $ 10,934
The Cost ending Inventory for 115 Units is $ 1,007