Question

Sage Hill Inc. uses a periodic inventory system reports the following for the month of June.

Date		Explanation		Units		Unit Cost		Total Cost
June 1		Inventory		120		$5		$600
12		Purchases		360		6		2,160
23		Purchases		210		7		1,470
30		Inventory		300

A sale of 340 units occurred on June 15 for a selling price of $9 and a sale of 50 units on June 27 for $10.

(a)

• Your Answer
• Correct Answer

Partially correct answer iconYour answer is partially correct.

Calculate the average cost per unit, using a perpetual inventory system. (Round intermediate calculations to 0 decimal places, e.g. 5.250 and final answer to 3 decimal places, e.g. 5.125.)

June 1		$enter a dollar amount
June 12		$enter a dollar amount
June 15		$enter a dollar amount
June 23		$enter a dollar amount
June 27		$enter a dollar amount

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Solution

  

Attempts: 6 of 6 used

(b1)

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 340 units occurred on June 15 for a selling price of $9 and a sale of 50 units on June 27 for $10. (Round intermediate calculations and final answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		Moving-Average
The cost of the ending inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
The cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Answer 1

Answer.

a)

Average cost per unit

Average cost method

b1.

Ending inventory and Cost of goods sold

FIFO

LIFO