Spotter Corporation reported the following for June in its periodic inventory re

Question

Spotter Corporation reported the following for June in its periodic inventory records Date Description Units Unit Cost Total Cost June 1 Beginning 11 Purchase 24 Purchase 30 Ending 12 50 38 42 $11.60 12.60 14.60 $139.20 630.00 554.80 Required: 1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Round your intermediate calculations and final answers to 2 decimal places.) Cost of Ending Invento Cost of Goods Sold FIFO LIFO Weighted Average Cost 2. Which of the three methods will lead to reporting the highest net income? O FIFO LIFO OWeighted Average Cost

Explanation / Answer

Units Unit cost Total Jun-01 12 11.6 139.2 Jun-11 50 12.6 630 Jun-24 38 14.6 554.8 Total 100 1324 Average cost = 1324/100 = 13.24 a FIFO Cost of ending inventory =(38*14.6)+(4*12.6)= 605.2 Cost of goods sold = 1324-605.2= 718.8 b LIFO Cost of ending inventory =(12*11.6)+(30*12.6)= 517.2 Cost of goods sold = 1324-517.2= 806.8 c Weighted average cost: Cost of ending inventory = 42*13.24= 556.08 Cost of goods sold = 1324-556.08= 767.92 2 FIFO method provides highest net income

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.