Question

Exercise 6-14 Sage Hill Inc. reports the following for the month of June. Unit Cost Date June 1 12 Units 114 Explanation Inventory Purchases Purchases Inventory 359 Total Cost $570 2,154 1,358 194 30 223 A sale of 393 units occurred on June 15 for a selling price of $9 and a sale of 51 units on June 27 for $10. Your answer is partially correct. Try again. Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.) June 1 June 12 June 15 June 23 June 27 LINK TO TEXT VIDEO: SEMILAR EXERCISE Your answer is partially correct. Try again. Calculate cost of the ending Inventory and the cost of goods sold for each cost flow assumption, using a

calculate cost of the ending inventory and the cost of goods sold for eaxh cost flow assumption, using a perpectual inventory system. Assume a sale of 393 units occurred on June 15 for a selling price of $9 and a sale of 51units on June 27 for $10.

Answer 1

Average cost per unit:

June 1	$5.000
June 12	$5.759
June 15	$5.759
June 23	$6.638
June 27	$6.638

Ending inventory and Cost of goods sold:

	FIFO	LIFO	Moving-Average
The Cost of ending inventory	$1,532	$1,401	$1,480
The cost of goods sold	$2,550	$2,681	$2,602

Calculations:

FIFO:

	Cost of goods sold
	Units	Unit cost	Total cost
June 1 inventory	114	$5	$570
June 12 purchase	279	$6	$1,674
	393		$2,244
June 12 purchase	51	$6	$306
Total	444		$2,550
	Ending Inventory
June 12 purchase	29	$6	$174
June 23 purchase	194	$7	$1,358
Total	223		$1,532

LIFO:

	Cost of goods sold
	Units	Unit cost	Total cost
June 12 purchase	359	$6	$2,154
June 1 inventory	34	$5	$170
	393		$2,324
June 23 purchase	51	$7	$357
Total	444		$2,681
	Ending Inventory
June 1 inventory	80	$5	$400
June 23 purchase	143	$7	$1,001
	223		$1,401

Moving-Average:

Date		Units (i)	Unit cost	Total cost (ii)	Avg. unit cost (ii/i)
June 1	Inventory	114	$5	$570	$5
June 12	Purchase	359	$6	$2,154
		473		$2,724	$5.759
June 15	Sale	-393	$5.759	($2,263)	$5.759
June 23	Purchase	194	$7	$1,358
		274		$1,819	$6.638
June 27	Sale	-51	$6.638	($339)	$6.638
June 30	Inventory	223		$1,480

Cost of goods sold = 2,263+339 = $2,602

Ending Inventory = $1,480