Question

Hele System Announcements Date Exercise 6-os (Part Level Submission) Flounder Corp. uses a periodic Inventory system. Its records show the following for the month of May, in which 73 units were sold. Explanation Units Unit Cost Total Cost May 1 Inventory 30 $9 $270 15 Purchase 21 10 210 24 Purchase 39 11 429 Total 90 $909 Your answer is correct. Calculate the weighted-average unit cost. (Round answer to 3 decimal places, 9. 5.125.) Weighted average unit cost 10.1 Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO (b) Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to decimal places, ap. 125.) FIFO LIFO AVERAGE-COST The ending Inventory at May 31 Click if you would like to show Work for this questioni Don Show Wors AW MacBook Air

Answer 1

$270 Ans a In weighted average cost method per unit purchase is derived by adding cost opening inventory and purchase made during the year and then dividing it by the adding the units of opening inventory and units purchased during the year Date Unit Rate Amount Opening inventory 30 $9 May 15 21 $10 $210 May 24 39 $11 $429 90 $909 Average Cost [$909/90] $10.10 Particulars Unit Rate Amount Cost of Good Sold 73 $10.10 $737 Ending inventory 17 $10.10 $172 $210 Ans b Periodic inventory System: In this system, the cost of sales and inventory are determined as the end of the accounting period. First in, first out method (FIFO) : In this method it is assumed that inventory which is purchased first will be sold first and the inventory will consist of recent purchases. Cost of Goods Sold Ending inventory Date Unit Rate Amount Date Unit Rate Amount Opening inventory 30 $9 $270 May 24 17 $11 $187 May 15 21 $10 May 24 22 $11 $242 73 $722 17 $187 Last in, first out method (LIFO): In this method it is assumed that inventory which is purchased last will be sold first and the inventory will consist of old purchases. Cost of Goods Sold Ending inventory Date Unit Rate Amount Date Unit Rate Amount May 24 39 $11 $429 May 1 17 $9 $153 May 15 21 $10 $210 May 1 13 $9 $117 73 $756 17 $153 Particulars No of Units FIFO LIFO Average Cost Cost of Good Sold 73 $722 $756 $737 Ending inventory 17 $187 $153 $172