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

Question

CES Problem 6-5A You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2017- Koetteritz uses the periodic methodfo Date June 1 Beginning inventory June 4Purchase June 10 Sale June 11 Sale return June 18 Purchase June 18Purchase return June 25 Sale June 28Purchase Unit Cost or Selling Price $42 46 67 67 47 47 73 51 Description Quantity 138 107 12 56 10 67 udy Calculate cost per unit. tRound answer to 2 decimal places, e.g. 5.25.) 55.34 weighted-average cost per unit

Explanation / Answer

Average cost per unit: Units Cost per unit Total 1-Jun 44 42 1848 4-Jun 138 46 6348 18-Jun 46(Net) 47 2162 28-Jun 33 51 1683 Total 261 12041 Average cost per unit = Total Cost / Total units = ( 12041 /261) = $ 46.134 per unit Total Units available   = 261 units Units sold(95+67) = 162 units Ending units ( 261 -162 ) = 99 units Total Sales: 95 units@67       =   $ 6,365 67 units@73   =      $ 4,891 Total Sales               $ 11,256 Average: Ending inventory ( 99 units@46.134)            $4567 Cost of goods sold = Total cost of goods available - Ending inventory ( 12041- 4567 ) = $ 7,474 Gross profit = Sales - Cost of goods sold ( 11256 - 7474 ) = $ 3,782 FIFO Ending Inventory (from last units purchased) = 33 units@51 +46 unts@47 and remaining 20 units@46 = $ 4,765 Cost of goods sold = Total cost of goods available - Ending inventory (12041-4765) = $ 7,276 Gross profit = Sales - Cost of goods sold ( 11256-7276) = $ 3,980 LIFO Ending inventory (from first purchased units) = 44 units @42 and remaining 55 units@46 $4,378 Cost of goods sold = Total cost of goods available - Ending inventory               ( 12041-4378) = $ 7,663 Gross profit = Sales - Cost of goods sold ( 11,256- 7663) = $ 3,593 LIFO FIFO Average Ending Inventory 4378 4765 4567 Cost of Goods sold 7663 7276 7474 Gross Profit 3593 3980 3782 In the period of rising pricces, LIFO gives highest Cost of Goods sold and the LOWEST Gross profit. And FIFO gives Lowest COGS and HIGHEST Gross profit

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