Question

Problem 6-05A a1-a3, b (Part Level Submission) (Video) You are provided with the following information for Splish Brothers Inc. for the month ended June 30, 2020. Splish Brothers uses the periodic method for inventory. Date Description Quantity Unit Cost or Selling Price June 1 Beginning inventory 45 $42 June 4 Purchase 135 46 June 10 Sale 115 73 June 11 Sale return 13 73 June 18 Purchase 54 48 June 18 Purchase return 9 48 June 25 Sale 68 78 June 28 Purchase 25 52

Answer 1

Your data
Date	Description	Quantity	Unit Cost	Selling price
June 1	Beginning inventory	45	$42
June 4	Purchase	135	46
June 10	Sale	115		73
June 11	Sale return	13		73
Net sales of June 10	Net sales	102		73
June 18	Purchase	54	48
June 18	Purchase return	9	48
Net Purchase of June 18	Net purchase	45	48
June 25	Sale	68		78
June 28	Purchase	25	52
Total sales		Units	Selling price	Total sales
Net sales of June 10		102	73	7,446
June 25		68	78	5,304
Total sales revenue		170		12,750

Method	First in First out				Periodic method for inventory
Date	Goods Available for sale			Cost of goods sold			Ending inventory
	Unit	Unit cost	Value	Unit	Unit cost	Value	Unit	Unit cost	Value
Beginning	45	42	1,890	45	42	1,890
Purchase - June 4	135	46	6,210	135	46	6,210
Net Purchase -June 18	45	48	2,160				45	48	2,160
Purchase - June 28	25	52	1,300				25	52	1,300
Total	250		11,560	180		8,100	70		3,460
Method	Last in First out				Periodic method for inventory
Date	Goods Available for sale			Cost of goods sold			Ending inventory
	Unit	Unit cost	Value	Unit	Unit cost	Value	Unit	Unit cost	Value
Beginning	45	42	1,890				45	42	1,890
Purchase - June 4	135	46	6,210	110	46	5,060	25	46	1,150
Net Purchase -June 18	45	48	2,160	45	48	2,160
Purchase - June 28	25	52	1,300	25	52	1,300
Total	250		11,560	180		8,520	70		3,040

Method	Weighted Average (Periodic method for inventory)
Date	Goods Available for sale
	Unit	Unit cost	Value
Beginning	45	42	1,890
Purchase - June 4	135	46	6,210
Net Purchase -June 18	45	48	2,160
Purchase - June 28	25	52	1,300
Total	250		11,560
Cost of Goods Available for sale			11,560
Divided by: Units Available for sale			250
Weighted Average cost per unit			46.24
Cost of goods sold	180	46.24	8,323
Ending inventory	70	46.24	3,237

Summary of answer
Inventory Method	First in First out	Last in First out	Weighted Average
Cost of goods sold	8,100	8,520	8,323
Ending inventory	3,460	3,040	3,237
Cost of Goods Available for sale	11,560	11,560	11,560
Income statement
Inventory Method	First in First out	Last in First out	Weighted Average
Sales revenue	12,750	12,750	12,750
Less: Cost of goods sold	8,100	8,520	8,323
Gross Profit	4,650	4,230	4,427