Question

Presented below is information related to Blowfish radios for the Oriole Company for the month of July. Units Sold Selling Price Total Total $ 780 6,400 600 $7.00 7.30 $4.200 4380 600 3.440 Date Transaction Units In Unit Cost July 1 Balance 200 $3.90 6 Purchase 1.600 4.00 7 Sale 10 Sale 12 Purchase 800 4.30 15 Sale 18 Purchase 22 Sale 25 Purchase 1.000 4.38 30 Sale Totals 4.200 400 7.40 2,960 800 2.640 800 7.40 5.920 4380 400 7.50 $17.640 2.800 3.000 $20,460 Calculate average cost per unit (Round answer to 2 decimal places, es 2.76) Weighted average costs 6,578) Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Round answers to decimal places, (1) FIFO (2) LIFO (3) Weighted average. FIFO LIFO Weighted Average Ending Inventory at July 31 $

Answer 1

rate positively ..

			Qty	Rate	Amt
	Date (October)
	1	Beginning	200	3.9	780
	6	Pur	1600	4	6400
	12	Pur	800	4.3	3440
	18	Pur	600	4.4	2640
	25	Pur	1000	4.38	4380
			4200		17640
	Unit sold =		2800
	4+3+7
	Ending inventory		1400
ans 1	weighted average cost = 17640/4200				4.20
ans 2	Computation of ending inventory
	FIFO=	1000*4.38+400*4.4			6140
	LIFO=	200*3.9+1200*4			5580
	Weighted average =	1400*4.2			5,880
ans 3	Lowest gross profit will be from -			Weighted average
ans 4	Lowerst ending inventory =			LIFO