Question

In: Accounting

Eversoll Inc. uses the periodic inventory system. June 1 On hand, 50 units

Eversoll Inc. uses the periodic inventory system.

June 1 On hand, 50 units @ $15.00 each $ 750.00 5

June 5 Purchased 115 units @ $15.10 each 1,736.50 14

June14 Purchased 75 units @ $15.20 each 1,140.00

Total cost of goods available for sale $3,626.50

30 On hand, 90 units

1. If Eversoll uses the FIFO (First In First Out) inventory method, the amount assigned to the June 30 inventory would be

a. $1,354.00 b. $1,366.50 c. $1,590.42 d. $1,594.00

2. If Eversoll uses the weighted average cost inventory method, the amount assigned to the June 30th inventory would be

a. $1,359.90 b. $1,486.50 c. $1,549.00 d. $1,591.50

3. If Eversoll uses the LIFO (Last In First Out) inventory method, the amount assigned to the June 30 inventory would be

a. $1,354.00 b. $2,200.00 c. $1,354.00 d. $2,296.08

Expert Solution

1.

75 * 15.20 + 15 * 15.10 = 1366.5

so answer is b. $1,366.50

2.

3626.50 / ( 115 + 50 + 75 ) = 15.11

90 * 15.11 = 1359.90

so answer is a. $1,359.90

3. 40 * 15.10 + 50 * 15 =1354

so answer is a. $1,354.00

Nabeel answered 2 years ago

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