Yount Company reports the following for the month of June. Date Explanation Unit

Question

Yount Company reports the following for the month of June.
Date Explanation Units Unit Cost Total Cost
June 1 Inventory 200 $8.95 $1,790
12 Purchase 300 $9.95 $2,985
23 Purchase 500 $10.95 $5,475
30 Inventory 120

Calculate the 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 $12 and a sale of 480 units on June 27 for $13. (Round moving-average unit cost to 3 decimal places, e.g. 2.250. Round final answers to 0 decimal places, e.g. 125.)


FIFO LIFO Moving-Average
Ending Inventory ? ? ?
Cost of Goods Sold ? ? ?

Explanation / Answer

sol Date/ Explanation/ Units/ Unit Cost/ Total Cost June 1/ Inventory/ 200/ $5/ $1,000 12/ Purchase/ 300/ 6/ 1,800 15/Sold/400/ 8/ 3,200 (COGS : 200 @ $5 plus 200 @ $6 = $2,200) 23/ Purchase/ 500/ 7/ 3,500 27/ Sold/ 480/ 9/ 4,320 (COGS : 100 @ $6 plus 380 @ $7 = $3,260) Total COGS : $5,460 30 Ending Inventory 120 @ $7 = $840 LIFO- Date/ Explanation/ Units/ Unit Cost/ Total Cost June 1/ Inventory/ 200/ $5/ $1,000 12/ Purchase/ 300/ 6/ 1,800 15/Sold/400/ 8/ 3,200 (COGS : 300 @ $6 plus 100 @ $5 = $2,300) 23/ Purchase/ 500/ 7/ 3,500 27/ Sold/ 480/ 9/ 4,320 (COGS : 480 @ $7 = $3,360) Total COGS : $5,660 30 Ending Inventory 120 (100 @ $5 plus 20 @ $7 = $640) Moving-average (MA)- Date/ Explanation/ Units/ Unit Cost/ Total Cost June 1/ Inventory/ 200/ $5/ $1,000 12/ Purchase/ 300/ 6/ 1,800 (MA : $2,800/500 = $5.60) 15/Sold/400/ 8/ 3,200 (COGS : 400 @ $5.60 = $2,240) 23/ Purchase/ 500/ 7/ 3,500 (MA : ($3,500 + $560)/600 = $6.767) 27/ Sold/ 480/ 9/ 4,320 (COGS : 480 @ $6.767 = $3,248.16) Total COGS : $5,488 30 Ending Inventory 120 @ $6.767 = $812

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