Question

Pronghorn Corp reports the following for the month of June.

Date		Explanation		Units		Unit Cost		Total Cost
June 1		Inventory		120		$5		$600
12		Purchases		346		6		2,076
23		Purchases		189		7		1,323
30		Inventory		229

A sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9.

Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.)

June 1		$
June 12		$
June 15		$
June 23		$
June 27		$

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Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9. (Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		Moving-Average
The cost of the ending inventory		$		$		$
The cost of goods sold		$		$		$

Answer 1

1]	Total cost of goods available for sale = 600+2076+1323 =	$                                 3,999
2]	CALCULATION OF WEIGHTED AVERAGE COST:
	Date	Total Cost	Total Units	Wt. Avg. Cost
	Jun-01	$                                     600	120	$                                 5.000
	Jun-12	$                                  2,676	466	$                                 5.742
	Jun-15	$                                     523	91	$                                 5.742
	Jun-23	$                                  1,846	280	$                                 6.592
	Jun-27	$                                  1,510	229	$                                 6.592
3]		FIFO	LIFO	Moving Average
	Cost of ending inventory	$                                  1,563	$                            1,421	$                                 1,510
		[189*7+40*6]	[91*5+138*7]	[229*6.592]
	COGS	$                                  2,436	$                            2,578	$                                 2,489
		[120*5+255*6+51*6]	[346*6+29*5+51*7]	[375*5.742+51*6.592]