Question

Presented below is information related to Blowfish radios for the Sunland Company for the month of July. Units Sold Selling Price Total Total $ 507 4,160 390 390 $6.70 7.00 $2,613 2,730 2,236 Date Transaction Units In Unit Cost July 1 Balance 130 $3.90 6 Purchase 1,040 4.00 7 Sale 10 Sale 12 Purchase 520 4.30 15 Sale 18 Purchase 390 4.40 22 Sale 25 Purchase 650 4.38 30 Sale Totals 2,730 260 7.10 1,846 1,716 520 7.10 3,692 2,847 7.20 260 1,820 1,872 $12,753 $11,466 Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost $

Answer 1

FIED Ans: - Date Particular July I opening bal 6 purchase Recupi Rat Issu. Rotor City oty Balance Rote 3.90 I 3.90 1040 130 130 1040 504 503 4160 7 Sales 3.90 SDT 1040 790 320 1560 390 Sales Purchases $20 390 52.0 1560 1560 22.36 2 15 Sales 130 520 43 is purchases 390 130 52-0 22.36 520 2236 1216 520 290 22 Sales - 4:3 4.4 390 559 1716

Recipt Issue Doto 25 ory Particulos city Purchases 650 pate $ 4.38 2847 Roto d aty 130 390 650 Balance Rate 4.3 4.4 4.35 554 176 2847 30 soles - - - 130 130 4-3 404 559 572 650 1144 2847 4-36 Jily clessing bal 3991

sty Rate & aty Roto Date Parties July I opening but 6 purchases oby 130 Balance Rob $3.90 1040 130 3-90 Sales 130 650 3.90 4 3:00 $ 50+ 507 4160 507 2600 504 1040 5097 1040 2236 12 purchases 520 430 2236 130 260 130 260 520 3.90 + 4-30 3.90 - is sales - 2604-30 1118 260 507 1000 260 4.30

Dot I Patio stu purchases 390 Receipt Petr 404 Iisus Rab $ $ 1716 Qty - - 18 Balance Qty 130 3.90 260 260 390 4.V 130 3.4 507 1040 nie 12 Sales 390 130 4.4 403 176 559 30 4-3 1716 507 1040 559 504 1040 559 2847 25 purchases 650 4.38 2847 260 130 4.3 4.36 3-4 130 SD 30 sales 260 0.38 1389 130 390 4-3 -28 1040 559 1708- Fuly 3814.2 doing balante

weighted Average Date July I 6 particular why opening bal purchases 1040 chy 130 1170 (130 + Balance Babe 3.90 3.99 46617 507 4667 [04+4160) 3.99 155601 1556-1 3.99 31109 1556-1 520 3792-1 4.17 1084-2 7 sales 10 sales 12. purchases | sales purchases Sales 25 purchase 30 sales 780 3.99 390 3.99 104-17 650 4017 1040 4.26 520 4.26 1120 4.33 90 4:33 4.26 2215.2 2710-5 4426.5 2215-2 5062.2 650 4+33 1125.8 13940.30 3940-30 July 31 closing bolan

LIFO method will yield the lowest gross profit. TO LIFO method, the net the lowest possible number the las est, most expensive income would be to report , since costs are used First. LIFO method will yield the lowest ending inventory As the most expensive costs are used first, it leads to lower of inventory cost.

The answer to the above question is shown.