Question

Determine the cast of goods available for sale. The cost of goods available for sale 1 9 1434 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used Collapse question part (61) Your answer is correct. Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) Average cost per unit 24.88 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 2 of 3 used (62) x Your answer is incorrect. Try again. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to O decimal pla 1,250.) FIFO AVERAGE-COST The ending inventory 18981 The cost of goods sold 73353 LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used SAVE FOR LATER SUBMIT

Answer 1

Working as follows:

Compute the weighted average cost per unit as follows:

Date	Description	Units	Unit cost	Total Cost
Ju. 01	Beginning Inventory	40	$40	$1,600
Ju. 04	Purchase	138	$43	$5,934
Ju. 18	Purchase	56	$46	$2,576
Ju. 18	Purchase return	-10	$46	($460)
Ju. 28	Purchase	29	$49	$1,421
	Total	253		$11,071
	WAC per unit ($11071 $\div$ 253 units)			$43.76

Units Available for sale = 253

Sales (113-15+68) = 166

Ending Inventory = 87

Sale revenue = (113 $\times$ $67) + (-15 $\times$ $67)+ (68 $\times$ $71)

= $$7571 - $1005 + $4828 = $11,394

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(a2)

Compute Ending inventory, COGS and Gross profit as follows:

1. LIFO: Last in first out

Ending inventory cost = (40 units $\times$ $40) + (47 units $\times$ $43) = $3621

COGS =Total Cost - Ending inventory cost

= $11,071 - $3621 = $7450

Gross Profit = Sale - COGS

= $11394 - $7450 = $3944

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2. FIFO: First in first out

Ending inventory cost = (29 units $49) +[ (56-10) =46 units ​​​​​​​ $46) + (12 units $43)

= $1421 + $2116 + $516 = $4053

COGS =Total Cost - Ending inventory cost

= $11,071 - $4053 = $7018

Gross Profit = Sale - COGS

= $11394 - $7018 = $4376

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3. Average Cost:

Ending Inventory cost = 87 units $43.76 (as computed in working)

= $3807

COGS = Total Cost - Ending inventory cost

= $11,071 - $3807 = $7264

Gross Profit = Sale - COGS

= $11394 - $7264 = $4130