Question

Current Attempt in Progress Grouper Corp. reports the following for the month of June. Date Explanation Units Unit Cost Total Cost $5 $600 June 1 Inventory 120 12 Purchases 361 6 2,166 Purchases 23 214 7 1,498 30 Inventory 225 (a) Compute the cost of the ending inventory and the cost of goods sold under FI FO, LIFO, and average-cost. (For calculation purposes, round average cost to 3 decimal places, e.g. 5.275. Round answers to O decimal places, e.g. 125.) FIFO LIFO Average-Cost $ $ The cost of the ending inventory $ $ $ The cost of goods sold

Answer 1

Answer: FIFO 1564 The cost of the ending inventory The cost of goods sold LIFO Average cost 1230 1380 3034 2883 2700

Explanation:

units 120 unit cost 5.00 Total cost 600 361 214 695 7.00 2166 1498 4264 FIFO (Periodic) Beginning Inventory June 1 Balance Purchases: June 12 Purchases June 23 Purchases Goods Available for sale Cost of goods sold Units from June 1 Balance Units from June 12 Purchases Total Cost of goods Sold Units from June 12 Purchases Units from June 21 Purchases Total Ending inventory 5.00 6.00 600 2100 2700 120 350 470 11 214 225 66 6.00 7.00 1498 1564

Total cost 600 214 2166 1498 4264 Periodic: LIFO Beginning Inventory units unit cost June 1 Balance 1201 5.00 Purchases: June 12 Purchases 361 6.00 June 23 Purchases 7.00 Goods Available for sale Sales (Issue-LIFO) Units from June 23 Purchase Units from June 12 Purchase 256 6.00 Total Cost of goods Sold 470 Units from June 12 Purchases 105 6.001 Units from June 1 Balance 120 5.00 Total Ending Inventory 225 214 1498 1536 3034 630 600 1230

unit cost Total cost 120 5.000 600 Periodic: Average Cost units Beginning Inventory June 1 Balance Purchases: June 12 Purchases 361 June 23 Purchases 214 Goods Available for sale 695 Cost of goods Sold 470 Ending Inventory 225 6.000 7.000 6.135 6.135 6.135 2166 1498 4264 2883 1380