Question

Pina Colada Limited uses a periodic inventory system. On June 24, the company sold 600 units. The following additional information is available:

		Units			Unit Cost			Total Cost
June 1 inventory		200			$12			$2,400
June 15 purchase		400			15			6,000
June 23 purchase		400			16			6,400
		1,000						$14,800

Correct answer iconYour answer is correct.

Calculate the June 30 inventory and the June cost of goods sold, using the weighted average cost formula. (Round weighted average cost per unit to 2 decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,275.)

Ending inventory		$
Cost of goods sold		$

eTextbook and Media

Correct answer iconYour answer is correct.

Calculate the June 30 inventory and the June cost of goods sold, using the FIFO formula.

Ending inventory		$
Cost of goods sold		$

eTextbook and Media

Incorrect answer iconYour answer is incorrect.

Assume that 200 units sold on June 24 had a unit cost of $12; 300 had a unit cost of $15; and the remaining 100 units had a unit cost of $16. Calculate the June 30 inventory and the June cost of goods sold, using the specific identification method.

Ending inventory
Cost of goods sold

Answer 1

Weighted average cost per unit$14,800/1,000 =$14.80 Ending inventory 400 units x $14.80 $5,920 Cost of goods sold = 600 units x $14.80 $8,880 FIFO Ending inventory Purchases Cost of goods sold Unit cost Total cost Units Unit cost Total cost Units Unit cost Total cost Units $12 June 1 inventory June 15 inventory June 23 inventory Total $2,400 $12 $15 $2,400 200 200 $15 $6,000 $16 $6,400 $14,800 $6,000 400 400 $16 $6,400 400 400 $8,400 $6,400 1000 600 400 Ending inventory = $6,400 Cost of goods sold = $8,400 Specific identification method Ending inventory Unit cost Total cost Purchases Cost of goods sold Unit cost Total cost Units Unit cost Total cost Units Units June 1 inventory June 15 inventory June 23 inventory Total $2,400 $6,000 $16 $12 $2,400 $4,500 $15 $1,600 $16 $8,500 200 $12 200 $15 $1,500 $15 400 300 100 $6,400 $14,800 $16 $4,800 400 100 300 $6,300 1000 600 400 Ending inventory = $6,300 Cost of goods sold $8,500