Jimmie’s Fishing Hole has the following transactions related to its top-selling

Question

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June 2015. Jimmie’s Fishing Hole uses a periodic inventory system.

Date:         Transactions:                     Units:        Cost per Unit:       Total Cost:

June 1        Beginning inventory           16               $180                     $2880

June 7        Sale                                    11               

June 12      Purchase                            10                170                      1700

June 15      Sale                                    12

June 24     Purchase                             10                160                      1600

June 27     Sale                                      8

June 29      Purchase                             8                 150                      1200

                                                                                                     _____________

                                                                                                             $7380

1) Using FIFO, calculate ending inventory and cost of goods sold at June 30, 2015.

Ending inventory:

Cost of goods sold:

2) Using LIFO, calculate ending inventory and cost of goods sold at June 30, 2015

Ending inventory:

Cost of goods sold:

3) Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30, 2015. (Round your intermediate and final answers to 2 decimal places.)

Ending inventory:

Cost of goods sold:

Explanation / Answer

Unit cost per Unit Total Cost Jun-01 Beginning Inventory 16 $180 $2,880 Jun-12 Purchase 10 $170 $1,700 Jun-24 Purchase 10 $160 $1,600 Jun-29 Purchase 8 $150 $1,200 Total Units 44             7,380 No. of Units Sold Jun-07 Sale 11 Jun-15 Sale 12 Jun-27 Sale 8 Total Units 31 Ending Inventory 13 Answer 1. FIFO Ending Inventory Date Particulars Unit Cost per Unit Total Cost Jun-29 Purchase 8 $150 $1,200 Jun-24 Purchase 5 $160 $800 Total 13 $2,000 Cost oF Goods Sold = $7380 - 2000 = $5380 Answer 2. LIFO Ending Inventory Date Particulars Unit Cost per Unit Total Cost Jun-01 Beginning Inventory 13 $150 $1,950 Total 13 $1,950 Cost oF Goods Sold = $7380 - $1950 = $5430 Answer 3. Weighted Average Cost Weighted Avg Cost Per Unit = $7380 / 44 Units = $167.73 per unit Ending Inventory Cost Date Particulars Unit Cost per Unit Total Cost Ending Inventory 13                167.73             2,180 Cost of Goods Sold = $7380 - 2180 = $5200

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