Question

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

Date		Transaction		Units In		Unit Cost		Total		Units Sold		Selling Price		Total
July 1		Balance		130		$4.10		$  533
6		Purchase		1,040		4.20		4,368
7		Sale								390		$6.90		$ 2,691
10		Sale								390		7.20		2,808
12		Purchase		520		4.50		2,340
15		Sale								260		7.30		1,898
18		Purchase		390		4.60		1,794
22		Sale								520		7.30		3,796
25		Purchase		650		4.58		2,977
30		Sale								260		7.40		1,924
		Totals		2,730				$12,012		1,820				$13,117

alculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted-average cost

$ LIFO AND FIFO AS WELL

Answer 1

	Cost of Goods available for sale
	Units	Cost/unit	COG for sale
Beginning Inventory	130	4.1	533
Transaction: July
6-Jul	1040	4.2	4368
12-Jul	520	4.5	2340
18-Jul	390	4.6	1794
25-Jul	650	4.58	2977
TOTAL	2730		12012
Average cost per unit = Cost of goods available for sale /Total units = 12012/2730 =			4.40
				Requirement ‘b’
Cost of goods sold =1820*4.40	8008
Ending inventory = 910*4.4	4004