Problem 6-5A You are provided with the following information for Koetteritz Inc.

Question

Problem 6-5A You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2017. Koetteritz uses the periodic method for inventory Unit Cost or Selling Price $39 43 67 67 46 46 72 51 Date Description Quantity 39 136 107 15 52 une Beginning inventory 4 Purchase June 10 Sale une 1 Sale return une 18 Purchase une 18 Purchase return une 25 Sale June 28 Purchase 68 27 Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25. Weighted-average cost per unit s 54.31 LINK TO TEXT

Explanation / Answer

LIFO FIFO Average cost Ending Inventory 3413 3584 3631.25 Cost of goods sold 7219 7048 7000.75 Gross profit 3841 4012 4059.25 Gross profit % = Gross profit / sales FIFO 3841/11060 34.7% LIFO 4012/11060 36.3% Average cost 4059.25/11060 36.7% Ending Inventory in Units: Units available for sale 243 Sales (107 - 15 + 68 ) 160 Units remaining in ending inventory 83 Goods available for sale Date Explanation Units unit cost Total Cost 01-Jun Beginning inventory 39 39 1521 04-Jun Purchase 136 43 5848 18-Jun Purchase 52 46 2392 18-Jun Purchase return -11 46 -506 28-Jun Purchase 27 51 1377 243 10632 Weightedaverage cost per unit = Cost of goods available for sale/units available for sale 10632/243 43.75 Sales Revenue Date Units Unit price Total Sales 10-Jun 107 67 7169 11-Jun -15 67 -1005 25-Jun 68 72 4896 160 11060 LIFO Ending Inventory 01-Jun 39 39 1521 04-Jun 44 43 1892 83 3413 Cost of goods sold Cost of goods available for sale 10632 Less: Ending inventory 3413 Cost of goods sold 7219 Gross profit Sales Revenue 11060 Cost of goods sold 7219 Gross profit 3841 FIFO Ending Inventory 28-Jun 27 39 1053 18-Jun 41 46 1886 04-Jun 15 43 645 83 3584 Cost of goods sold Cost of goods available for sale 10632 Less: Ending inventory 3584 Cost of goods sold 7048 Gross profit Sales Revenue 11060 Cost of goods sold 7048 Gross profit 4012 Average cost Ending Inventory 83*43.75 3631.25 Cost of goods sold Cost of goods available for sale 10632 Less:Ending Inventory 3631.25 Cost of goods sold 7000.75 gross profit Sales Revenue 11060 Cost of goods sold 7000.75 Gross profit 4059.25

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