You are provided with the following information for Windsor Inc. for the month e
ID: 2554929 • Letter: Y
Question
You are provided with the following information for Windsor Inc. for the month ended June 30, 2019. Windsor uses the periodic method for inventory Unit Cost Quantity Selling Price June 1 Beginning inventory June 4Purchase June 10 Sale June 11 Sale return June 18 Purchase June 18 Purchase return une 25Sale June 28 Purchase $38 136 42 14 dv Calculate cost per unit, (Round answer to 2 declmal places, e.g. s25.) Weighted-average cost per unit s Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average cost meih decimal places, e.g. 1,250.25 and other answers to O decimal places, e.g. 1,2s0. Use weighted-average unit cost rounded to 2 decimal places for co LIFO FIFOExplanation / Answer
1)Cost of goods available for sale : [40*38]+[136*42]+[58*44]-[9*44]+[31*48]
= 10876
units available for sale :40+136+58-9+31= 256 units
units sold:114-14+64= 164
Units in ending inventory= 256-164= 92
a) weighted average cost per unit = cost of goods available for sale /units available for sale
= 10876/256
= 42.48 per unit
b)UNder FIFO units acquired first are sold first so endin inventory is left from last purchase.
Under LIFO units acquired last are sold first so ending inventory is left from beginning balance
Net sales revenue : [114-14]*73+ [64*78]
=12292
[31*48]+[(58-9return)*44]+[12*42]
4148
[40*38]+[52*42]
3704
10876-3704
7172
10876-3908
6968
3)
FIFO LIFO Weighted average Ending inventory[31*48]+[(58-9return)*44]+[12*42]
4148
[40*38]+[52*42]
3704
42.48*92= 3908 cost of goods sold [cost of goods available for sale -ending inventory] 10876-4148=672810876-3704
7172
10876-3908
6968
Gross profit [sales revenue -COGS] 12292-6728= 5564 12292-7172=5120 12292-6968=5324Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.