Exercise 8-13 Date Transaction Units In Unit Cost Total Units Sold Selling Price
ID: 2510079 • Letter: E
Question
Exercise 8-13
Date
Transaction
Units In
Unit Cost
Total
Units Sold
Selling Price
Total
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(1)
FIFO
(2)
LIFO
(3)
Weighted-Average
Exercise 8-13
Presented below is information related to Blowfish radios for the Crane Company for the month of July.Date
Transaction
Units In
Unit Cost
Total
Units Sold
Selling Price
Total
July 1 Balance 120 $3.80 $ 456 6 Purchase 960 3.90 3,744 7 Sale 360 $6.80 $ 2,448 10 Sale 360 7.10 2,556 12 Purchase 480 4.20 2,016 15 Sale 240 7.20 1,728 18 Purchase 360 4.30 1,548 22 Sale 480 7.20 3,456 25 Purchase 600 4.28 2,568 30 Sale 240 7.30 1,752 Totals 2,520 $10,332 1,680 $11,940 Your answer is correct. Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)Weighted-average cost $
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Your answer is partially correct. Try again. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Round answers to 0 decimal places, e.g. 6,578.)(1) FIFO.
(2) LIFO.
(3) Weighted-average.
(1)
FIFO
(2)
LIFO
(3)
Weighted-Average
Explanation / Answer
1. AVERAGE COST PER UNIT
= Total Purchase cost / Total Qty. purchase
= $ 9,876 / 2400
= $ 4.12 per unit
2. ENDING INVENTORY AT JULY 31
(i) As per FIFO Method
Closing Inventory = 840 units
Cost of Inventory = ( 600 x 4.28) + (240 x 4.30)
= $ 3,600
(ii) As per LIFO Method
Clsoing Inventory = 640 units
Cost of Inventory = ( 120 x 3.80) + (520 x 3.90)
= $ 2,484
(iii) As per Weighted Average
Clsoing Inventory = 640 units
Cost of Inventory = ($ 10,332 / 2520) X 640
= $ 2,624
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