Just #3 please. 3) Jimmie\'s Fishing Hole has the following transactions related
ID: 2577579 • Letter: J
Question
Just #3 please.
3) Jimmie's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June: Date June 1 Beginning inverntory June 7 Sale June 12 Purchase June 15 Sale June 24 Purchase June 27 Sale Transactions Units 16 Cost per Unit Total Cost $350 S 5,600 340 3,400 10 12 10 330 3,330 June 29 Purchase 320 2.880 $15180 Requirea 1. Using FIFO, calculate ending inventory and cost of goods sold at June 30. 2. Using LIFO, calculate ending inventory at June 30. 3. Using weighted-average cost, calculate ending inventory at June 30 4) Toys "R" Us sells a variety of children's toys, games, books, and accessories. Assume that local store has the following amounts for the month of March 2018 $77,300Inventory (Mar. 31, 2018) Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (Mar. 1,2018) 2800Income tax expense Cost of goods sold Requirea 1. Prepare a multiple-step income statemerit for the month ended Ma $1.000 2,300 3,000 9.400 4,200 6.400 Insurance expense 4.300Sales discounts 7.500Salaries expense for the month ended March 31, 2018Explanation / Answer
3. Calculation of closing Inventory as per weighted average cost.
Total cost of goods available for sale = Beginning Inventory + Purchase during the year
= (16 x 350) + (10 x 340) + (10 x 330) + (9 x 320) = $15,180
Total Units Available = 16 + 10 + 10 + 9 = 45 units
Weighted Average Cost = $15,180 / 45 units = $337.33 per unit
Closing inventory in units = 14 units
Value of Closing Inventory = 14 units x $337.33 = $4,722.62
NOTE: In the question, total cost of purchase on June 24 is given wrongly as $3,330. rather it should be (10 x 330) = $3,300. But total is given right. Thats a printing mistake.
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