Brief Exercise 6-10 (Part Level Submission) Grouper Corp. uses a perpetual inven

Question

Brief Exercise 6-10 (Part Level Submission) Grouper Corp. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below Unit Price Number of Date May 7 July 28 On June 1, Grouper Corp. sold 24 units, and on August 27, 32 more units Units 48 32 $11 16 (a) Your answer is correct. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.) une 1 sale: Aug. 27 sale: 13.857 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 3 used (b) X Your answer is incorrect. Try again Compute the cost of goods sold using FIFO, LIFO, and average-cost. (Round answers to o decimal places, e.g 125.) FIFO LIFO AVERAGE-COST Cost of goods sold 530 824 1354

Explanation / Answer

Solution:(b): Calculation of cost of goods sold (COGS) using different methods:

COGS (under FIFO) = (24 units × $11) + (24 units × $11) + (8 units × $16) = $656

COGS (under LIFO) = (24 units × $16) + (8 units × $16) + (24 units × $11) = $776

COGS (under Average cost) = (24 units × $11) + (32 units × $13.857) = $707

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