Question
In: Accounting
(Calculating FIFO, Weighted Average Cost—Periodic) The following information is for the inventory of mini-kettles at Funnell...
(Calculating FIFO, Weighted Average Cost—Periodic) The following information is for the inventory of mini-kettles at Funnell Company Limited for the month of May:
| Date | Transaction | Units In | Unit Cost | Total | Units Sold | Unit Price | Total |
| May 1 | Balance | 100 | $4.10 | $ 410 | |||
| 6 | Purchase | 800 | 4.20 | 3,360 | |||
| 7 | Sale | 300 | $7.00 | $ 2,100 | |||
| 10 | Sale | 300 | 7.30 | 2,190 | |||
| 12 | Purchase | 400 | 4.50 | 1,800 | |||
| 15 | Sale | 200 | 7.40 | 1,480 | |||
| 18 | Purchase | 300 | 4.60 | 1,380 | |||
| 22 | Sale | 400 | 7.40 | 2,960 | |||
| 25 | Purchase | 500 | 4.58 | 2,290 | |||
| 30 | Sale | 200 | 7.50 | 1,500 | |||
| Totals | 2,100 | $9,240 | 1,400 | $10,230 |
Instructions
a. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under each of the following cost flow formulas:
- 1. FIFO
- 2. Weighted average (round the weighted average unit cost to the nearest one tenth of one cent)
b. Which method will yield the higher current ratio or gross profit?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Periodic and Perpetual Systems—Calculating Ending Inventory and Cost of Sales using Average Cost (Moving Average), FIFO,...
Periodic and Perpetual Systems—Calculating Ending
Inventory and Cost of Sales using Average Cost (Moving Average),
FIFO, and LIFO
Undew Inc.’s inventory records showed the following data for an
item it sells regularly.
Date
Units
Unit Cost
Jan 1
Inventory
2,000
$10.00
Jan 3
Purchases
18,000
10.40
Jan 7
Sales (at $26 per unit)
7,000
Jan 20
Purchases
6,000
11.00
Jan 22
Sales (at $27 per unit)
16,000
Jan 30
Purchases
3,000
12.00
a. Assuming that Undew maintains a periodic inventory...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory
Using FIFO, LIFO, and Weighted Average Cost Methods
The units of an item
available for sale during the year were as follows:
Jan. 1
Inventory
10
units at $36
$360
Aug. 7
Purchase
15
units at $38
570
Dec. 11
Purchase
15
units at $39
585
40
units
$1,515
There are 18 units of
the item in the physical inventory at December 31. The periodic
inventory system is used. Determine the inventory cost using (a)
the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods
The units of an item available for sale during the year were as
follows:
Jan. 1
Inventory
15
units at $36
$540
Aug. 7
Purchase
20
units at $37
740
Dec. 11
Purchase
15
units at $38
570
50
units
$1,850
There are 19 units of the item in the physical inventory at
December 31. The periodic inventory system is used. Determine the
inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods
The units of an item available for sale during the year were as
follows:
Jan. 1
Inventory
9
units at $28
$252
July 7
Purchase
6
units at $31
186
Nov. 23
Purchase
14
units at $33
462
29
units
$900
There are 17 units of the item in the physical inventory at
December 31. The periodic inventory system is used. Determine the
inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available...
Periodic Inventory
Using FIFO, LIFO, and Weighted Average Cost Method.
The units of an item
available for sale during the year were as follows:
Jan. 1
Inventory
14
units at $27
$378
Aug. 13
Purchase
19
units at $30
570
Nov. 30
Purchase
11
units at $32
352
Available for sale
44
units
$1,300
There are 17 units of
the item in the physical inventory at December 31. The periodic
inventory system is used. Determine the inventory cost using (a)...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods
The units of an item available for sale during the year were as
follows:
Jan. 1
Inventory
10
units at $26
$260
Aug. 7
Purchase
15
units at $28
420
Dec. 11
Purchase
10
units at $29
290
35
units
$970
There are 16 units of the item in the physical inventory at
December 31. The periodic inventory system is used. Determine the
inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods The units of an item available for sale during the year
were as follows: Jan. 1 Inventory 5 units at $37 $185 Aug. 7
Purchase 18 units at $39 702 Dec. 11 Purchase 13 units at $40 520
36 units $1,407 There are 16 units of the item in the physical
inventory at December 31. The periodic inventory system is used.
Determine the inventory cost using
(a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods The units of an item available for sale during the year
were as follows: Jan. 1 Inventory 13 units at $41 $533 Aug. 7
Purchase 19 units at $44 836 Dec. 11 Purchase 13 units at $46 598
45 units $1,967 There are 16 units of the item in the physical
inventory at December 31. The periodic inventory system is used.
Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods
The units of an item available for sale during the year were as
follows:
Jan. 1
Inventory
5
units at $34
$170
Aug. 7
Purchase
19
units at $35
665
Dec. 11
Purchase
14
units at $37
518
38
units
$1,353
There are 19 units of the item in the physical inventory at
December 31. The periodic inventory system is used. Determine the
inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost
Methods
The units of an item available for sale during the year were as
follows:
Jan. 1
Inventory
4
units at $31
$124
Aug. 7
Purchase
20
units at $33
660
Dec. 11
Purchase
13
units at $35
455
37
units
$1,239
There are 17 units of the item in the physical inventory at
December 31. The periodic inventory system is used. Determine the
inventory cost using (a) the first-in, first-out...
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