Problem 6-5A (Part Level Submission) Date Description Quantity Unit Cost or Sell

Question

Problem 6-5A (Part Level Submission)

Date

Description

Quantity

Unit Cost or
Selling Price

(a1)

LINK TO TEXT

(a2)

LIFO

FIFO

AVERAGE-COST

LINK TO TEXT

(a3)

LIFO

FIFO

AVERAGE-COST

Problem 6-5A (Part Level Submission)

You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.

Date

Description

Quantity

Unit Cost or
Selling Price

June 1 Beginning inventory 45 $42 June 4 Purchase 136 46 June 10 Sale 113 69 June 11 Sale return 15 69 June 18 Purchase 54 48 June 18 Purchase return 12 48 June 25 Sale 68 74 June 28 Purchase 35 52

Explanation / Answer

a. FIFO

Purchases Issues Balance

45

136

42

46

1890

6256

45

68

42

46

1890

3128

68

15

46

69

3128

1035

68

15

54

46

69

48

3128

1035

2592

56

15

54

46

69

48

2576

1035

2592

56

12

46

69

2576

828

3

54

69

48

207

2592

3

54

35

69

48

52

207

2592

1820

Ending inventory:

3 units @ 69 = 207

54 units @ 48 = 2592

35 units @ 52 = 1820

Cost of goods sold :

45 units @ 42 = 1890

68 @ 46 = 3128

12 @ 46 = 552

56 @ 46 = 2576

12 @ 69 = 828

Gross profit rate :

Gross profit = Sales - cost of goods sold

= 13405 - 8974 = 4431

LIFO :

Purchases Issues Balances

45

136

42

46

1890

6256

113

46

45

23

42

46

1890

1058

45

23

15

42

46

69

1890

1058

1035

45

23

15

54

42

46

69

48

1890

1058

1035

2592

45

23

15

42

42

46

69

48

1890

1058

1035

2016

42

15

11

48

69

46

2016

1035

506

45

12

42

46

1890

552

45

12

35

42

46

52

1890

552

1820

Ending inventory :

45@42 = 1890

12@46 = 552

35@52 = 1820

Cost of goods sold :

113 @ 46 = 5198

12 @ 48 = 576

42 @ 48 = 2016

15 @ 69 = 1035

11 @ 46 = 506

Gross profit = sales - cost of goods sold

= 13405 - 9331 = 4074.

Date Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount June 1 45 42 1890 4 136 46 6256

45

136

42

46

1890

6256

10

45

68

42

46

1890

3128

68 46 3128 11 15 69 1035

68

15

46

69

3128

1035

18 54 48 2592

68

15

54

46

69

48

3128

1035

2592

18 12 46 552

56

15

54

46

69

48

2576

1035

2592

25

56

12

46

69

2576

828

3

54

69

48

207

2592

28 35 52 1820

3

54

35

69

48

52

207

2592

1820

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.