Question

Question 20 Presented below is information related to Blowfish radios for the Blossom Company for the month of July. Units Sold Selling Price Total Units In 130 1,040 Unit Cost $4.10 4.20 Total $ 533 4,368 390 390 $6.90 7.20 $2,691 2,808 Date July 1 6 7 10 12 15 18 22 25 30 520 4.50 2,340 Transaction Balance Purchase Sale Sale Purchase Sale Purchase Sale Purchase Sale Totals 260 7.30 1,898 390 4.60 1,794 520 7.30 3,796 650 4.58 2,977 7.40 _2,730 260 1,820 1,924 $13,117 $12,012 Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost $ 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 o decimal places, e.g. 6,578.) (1) FIFO. (2) LIFO. (3) Weighted average. (1) FIFO (2) LIFO (3) Weighted-Average Ending Inventory at July 31 s Which of the methods used above will yield the lowest figure for gross profit for the income statement? method will yield the lowest gross profit. Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? method will yield the lowest ending inventory.

Answer 1

sale 1) calculation of weighted average cost per unit » Total cost of goods available for Nou of units Period $ 12,012 2,730 = 1$4.4 10 m Periodic awentory system - our Total units available for sale lessi- Total units sold i Ending awentory = 2,730 - (1920) 910 102 (1) FICO (650x $4.58) + (910-656) x 4.60 = 2,977 + 1,196 = $4,173 Flops 2) LIFO (130 x $4-10) + [1910-130) x 4:20] = 533+ 3,276 $3,809 32 3). weighted 2 need average: average : l aut 9100 $4.4 $4,004 weighted average calculation of Gross Peofit une sate, Pachways FITO sales $13,117 cess: cost of goods sold (7,839) Gross Peoft 8.51278 (110 13,117 (8203) 4,914 13,117 (8,008) $S109 Sales (390x $6.90) + (390x7.20) + (260x 7.3) + (520x730) + (260x7.40) $13,117

cost of goods sold 1) FIFO (1308$4.10) + (1040x (130 x $ 4p20) - $7,839 $ 4.20) + (520x $4.50) + 2) LIFO (650x84.58) + (390x $4.60) + (520x 84.50) t. (260x84-20) 22 $8,203 3) weighted average nuernod 1,820 x $uil = 8,008 Titol method in. Gields the lowest gross propit Income statement Lif method yield the lowest Ending Inventory.