Weygandt, Accounting Principles, 12e Help I System Announcements ment PRINTER VE

Question

Weygandt, Accounting Principles, 12e Help I System Announcements ment PRINTER VERSION BACK Problem 6-9A Wittmann Co. began operations on July 1. sales. It uses a perpetual inventory system. During July, the company had the following purchases and Purchases Date uly 1 July 6 July 11 July 14 July 21 July 27 75 $122 45 105 $136 75 120 $147 75 Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27. (Round answers to 2 decimal places, e.g. s105.50.) Average cost for each unit July 1 July 6

Explanation / Answer

FIFO Method Date Purchases Cost of Goods Sold Balance Units Unit Price Total Units Unit Price Total Units Unit Price Total July 1               75             122            9,150               75             122            9,150 July 6               45             122            5,490               30             122            3,660 July 11             105             136          14,280               30             122            3,660             105             136          14,280             135          17,940 July 14               30             122            3,660               60             136            8,160               45             136            6,120               75            9,780 July 21             120             147          17,640               60             136            8,160             120             147          17,640             180          25,800 July 27               60             136            8,160             105             147          15,435 15 147            2,205               75          10,365 Total          41,070          25,635 LIFO Method Date Purchases Cost of Goods Sold Balance Units Unit Price Total Units Unit Price Total Units Unit Price Total July 1               75             122            9,150               75             122            9,150 July 6               45             122            5,490               30             122            3,660 July 11             105             136          14,280               30             122            3,660             105             136          14,280             135          17,940 July 14               75             136          10,200               30             122            3,660               30             136            4,080               60            7,740 July 21             120             147          17,640               30             122            3,660               30             136            4,080             120             147          17,640             180          25,380 July 27               75             147          11,025               30             122            3,660               30             136            4,080               45             147            6,615             105          14,355 Total          41,070          26,715 Moving Average Method Date Purchases Cost of Goods Sold Balance Units Unit Price Total Units Unit Price Total Units Unit Price Total July 1               75       122.00      9,150.00               75       122.00      9,150.00 July 6               45       122.00      5,490.00               30       122.00      3,660.00 July 11             105       136.00    14,280.00               30       122.00      3,660.00             105       136.00    14,280.00             135       132.89    17,940.00 July 14               75       132.89      9,966.67               60       132.89      7,973.33 July 21             120       147.00    17,640.00               60       132.89      7,973.33             120       147.00    17,640.00             180       142.30    25,613.33 July 27               75       142.30    10,672.22             105       142.30    14,941.11 Total    41,070.00    26,128.89 Answer 1. Average Cost Per Unit July 1       122.00 July 6       122.00 July 11       132.89 July 14       132.89 July 21       142.30 July 27       142.30 Answer 2. FIFO Moving Average LIFO Ending Inventory Under a perpectual Inventory system       15,435    14,941.11       14,355

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