edugen.wileyplus.com andt, Financial & Managerial Accounting. 2e ACC 201/202: Fi
ID: 2414329 • Letter: E
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edugen.wileyplus.com andt, Financial & Managerial Accounting. 2e ACC 201/202: Financial and Managerial Accounting () STANDARD VIEW PRINTER VERSION BACK NEXT Preblem 6-SA You are provided with the following information for Najera Inc for the month ended June 30, 2017. Najera uses the periodic method for inventory Selling June 1 Reginning une 4 Purchase June 10 Sale 42 $38 140 42 105 71 15 71 53 44 12 44 64 76 28 48 une 28 Purchase Calculate cost per unit.(Round answer to 2 decimal places, o.g. s.25.) Weighted-average cost per unit Calculate ending inventory, cost of goods sold, gross profit under each of the follawing methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost m decimal places, o.g. 1,250.25 and other answers to O decimal places, .g. 1,250. Use weignted-average unit cest rounded to 2 decimal places The ending inventory The cost of good sold Gross proft Calculate gross profit rate under each of the following methods. (1) Lro. (2) FIFO (3) Average-oost. (Round answers to l decimer place, eg. 51.29.) Gross profit rate Compare the results for the three cost fow assumptions and answer the folowing questions In this period of rsing prices, LFO gives the cost of goods sold and theyross proft. FIFO gives thecost of goods sold and by accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: of 2 used SAVE FOR LExplanation / Answer
Solution:
Weighted average cost per unit = Cost of goods available for sale / Nos of units available for slae = $10,624 / 251 = $42.33
In the period of rising prices, LIFO gives higher cost of goods sold and the lowest gross profit, FIFO gives lowest cost of goods sold and highest gross profit.
Computation of COGS and ending inventory - Periodic Weighted Average cost method Particulars Cost of goods available for sale Cost of goods sold - Average cost Ending Inventory - Average cost Nos of units Unit Cost Cost of goods available for sale Nos of units sold Unit Cost Cost of goods sold Nos of units in ending inventory Unit Cost Ending inventory Beginning inventory 42 $38.00 $1,596 Purchases: 4-Jun 140 $42.00 $5,880 18-Jun 53 $44.00 $2,332 18-Jun -12 $44.00 -$528 28-Jun 28 $48.00 $1,344 Total 251 $42.33 $10,624 154 $42.33 $6,518 97 $42.33 $4,106Related Questions
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