Question

Inventory Costing Methods-Perpetual Method Shiloh Company uses the perpetual inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $60. Transactions for this item during June were as follows:

June	5	Purchased	40	units @	$70 per unit
	13	Sold	50	units @	110 per unit
	25	Purchased	30	units @	72 per unit
	29	Sold	20	units

Required
a. Calculate the cost of goods sold and the ending inventory cost for the month of June using the weighted-average cost method. Do not round until your final answers. Round to the nearest dollar.

b. Calculate the cost of goods sold and the ending inventory cost for the month of June using the first-in, first-out method.

c. Calculate the cost of goods sold and the ending inventory cost for the month of June using the last-in, first-out method.

a.	Weighted Average
	Ending Inventory	$
	Cost of goods Sold	$
b.	First-in, First-out:
	Ending Inventory	$
	Cost of Goods Sold:	$
c.	Last-in, first-out:
	Ending Inventory	$
	Cost of Goods Sold:	$

Answer 1

a. weigheted average cost method-

date		units left	rate	balance
1 june	opening 60*60	60	60	3600
5	pur 40*70	100	64	6400
	sold 50*64	50	64	3200
	purchase 30*72	80	67	5360
	sold 20*67	60	67	4020

cost of goods sold = 50*64 + 20*67 =

ending inventory = 60*67 = 4020

b.

date		units left	rate	balance
1 june	opening 60*60	60	60	3600
5	pur 40*70	60 40	60 70	3600 4200
	sold 50*	10 40	60 70	600 4200
	purchase 30*72	10 40 30	60 70 72	600 4200 2160
	sold 20*	30 30	70 72	2100 2160

cost of goods sold = 50*60+ 10*60+10*70 =

ending inventory = 30*70+30*72 =

c.

date		units left	rate	balance
1 june	opening 60*60	60	60	3600
5	pur 40*70	60 40	60 70	3600 4200
	sold 50*	50	60	3000
	purchase 30*72	50 30	60 72	3000 2160
	sold 20*	50 10	60 72	3000 720

cost of goods sold = 40*70+10*60 + 20*72 =

ending inventory = 50*60+10*72 =