Question

Presented below is information related to Blowfish radios for the Concord Company for the month of July.

Date		Transaction		Units In		Unit Cost		Total		Units Sold		Selling Price		Total
July 1		Balance		150		$3.90		$  585
6		Purchase		1,200		4.00		4,800
7		Sale								450		$6.70		$ 3,015
10		Sale								450		7.00		3,150
12		Purchase		600		4.30		2,580
15		Sale								300		7.10		2,130
18		Purchase		450		4.40		1,980
22		Sale								600		7.10		4,260
25		Purchase		750		4.38		3,285
30		Sale								300		7.20		2,160
		Totals		3,150				$13,230		2,100				$14,715

Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted-average cost $

Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Round answers to 0 decimal places, e.g. 6,578.) (1) FIFO. (2) LIFO. (3) Weighted-average. (1) FIFO (2) LIFO (3) Weighted-Average Ending Inventory at July 31 $ $ $

Which of the methods used above will yield the lowest figure for gross profit for the income statement? method will yield the lowest gross profit.

Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? method will yield the lowest ending inventory.

Answer 1

1) Weighted Average Cost Per Unit - $4.20 Per Unit. (See below workings at weighted Average Cost section).

If you have any doubts please comment on the answer.