Question

Sandhill Co. uses a perpetual inventory system reports the following for the month of June. Unit Cost Date Explanation Units Total Cost $5 $575 June 1 Inventory 115 12 Purchases 345 2,070 6 Purchases 23 190 1,330 7 30 200 Inventory LLIE! 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 eTextbook and Media Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for a selling price of $8 and a sale of 50 units on June 27 for $9. (Round answers to O decimal places, e.g. 125.) FIFO LIFO Moving-Average $ $ $ The cost of the ending inventory $ $ The cost of goods sold

Answer 1

FIFO		Cost of Goods Available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jun-01	Beginning Inventory	115	$               5.00	$          575.00				115	$      5.00	$      575.00
Jun-12	Purchase	345	$               6.00	$      2,070.00				115	$      5.00	$      575.00
								345	$      6.00	$   2,070.00
Jun-15	Sales				115	$          5.00	$      575.00
					285	$          6.00	$   1,710.00	60	$      6.00	$      360.00
Jun-23	Purchase	190	$               7.00	$      1,330.00				60	$      6.00	$      360.00
								190	$      7.00	$   1,330.00
Jun-27	Sales				50	$          6.00	$      300.00	10	$      6.00	$         60.00
								190	$      7.00	$   1,330.00
	Total			$      3,975.00			$   2,585.00	200		$   1,390.00

LIFO		Cost of Goods Available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jun-01	Beginning Inventory	115	$               5.00	$          575.00				115	$      5.00	$      575.00
Jun-12	Purchase	345	$               6.00	$      2,070.00				115	$      5.00	$      575.00
								345	$      6.00	$   2,070.00
Jun-15	Sales				345	$          6.00	$   2,070.00	60	$      5.00	$      300.00
					55	$          5.00	$      275.00
Jun-23	Purchase	190	$               7.00	$      1,330.00				60	$      5.00	$      300.00
								190	$      7.00	$   1,330.00
Jun-27	Sales				50	$          7.00	$      350.00	60	$      5.00	$      300.00
								140	$      7.00	$      980.00
	Total			$      3,975.00			$   2,695.00	200		$   1,280.00

W. Avg		Cost of Goods Available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jun-01	Beginning Inventory	115	$               5.00	$               575				115	$      5.00	$            575
Jun-12	Purchase	345	$               6.00	$            2,070				115	$      5.00	$            575
								345	$      6.00	$         2,070
					Average			460	$      5.75	$         2,645
Jun-15	Sales				400	$          5.75	$         2,300	60	$      5.75	$            345
Jun-23	Purchase	190	$               7.00	$            1,330				60	$      5.75	$            345
								190	$      7.00	$         1,330
					Average			250	$      6.70	$         1,675
Jun-27	Sales				50	$          6.70	$            335	200	$      6.70	$         1,340
	Total			$            3,975			$         2,635	200		$         1,340

Average Cost per unit

Jun-01	$      5.00
Jun-12	$      5.75
Jun-15	$      5.75
Jun-23	$      6.70
Jun-27	$      6.70