Question: Inventory data for Kaleta Company are presented in E6-6. In E6-6, Kaleta Company reports the following for the month of June. Instructions (a) Compute the

Inventory data for Kaleta Company are presented in E6-6.
In E6-6, Kaleta Company reports the following for the month of June.

Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method.
(b) Will the results in (a) be higher or lower than the results under (1) FIFO and (2) LIFO?
(c) Why is the average unit cost not$6?

Units Unit Cost Total Cost 200 400 JunePurche 300 30 Inventory 100 JuneInventory 12 Purchase Purchase $1,000 2,400 2,100 S5 6

Step by Step Solution

★★★★★

3.36 Rating (180 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Cost of Goods Available for Sale 5500 Total Units Available for Sale 900 Weighted A... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

274-B-M-A-I (1976).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Inventory data for Eastland Company are presented in E. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (b) Will the results in (a)...

Inventory data for Flanagan Company are presented in E6-6. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (b) Will the results in...

Data for Ziebert Company are presented in P17-9B. Further analysis reveals that accounts payable pertain to merchandise creditors. Instructions Prepare a statement of cash flows for Ziebert Company...

6The question I have is 6-7. Thanks (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO, (b) Which costing method gives the higher ending inventory?...

year E6.9 (LO 2) Inventory data for Kaleta Company are presented in E6.7 Instructions a. Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round...

E6.8 (LO 2) Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The com- pany purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 80 units in...

E6-15 please and thank you 111 Compute Deere's inventory turnover and days in inventory for 2017. (Round inventory turnover to 2 decimal places.) b) Compute Deere's current ratio using the 2017 data...

Inventory data for Jeters Company are presented in E6-7. In E6-7 Jeters Company reports the following for the month of June. Instructions (a) Calculate the cost of the ending inventory and the cost...

CS TII trhe Iirst year? E6.9 (LO 2) Inventory data for Kaletu Company are presented in E6.7. Compute inventory and cost of goods sold using average-cost Instructions of the ending inventory and the...

E6.9 parts A, B, C please E6.9 (LO 2) Inventory data for Moath Company are presented in E6.7. Compute inventory and cost of goods sold using average-cost. Instructions a. Compute the cost of the...

Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl-Hirschman index of 2,900 if the postmerger index is...

Use the graphs to evaluate the expressions below. 6+ 5 -1 5 4 3 2 7 f(x) f(g(0)) 1 f(f(3)) = g(f(1)) = = = g(g(2)) = 2 x 4 5 6-1 A 3 2 -1 g(x) 1 2 3 on 4 5 X Po

FIN 3 6 8 0 - 1 0 2 _ INTRODUCTION TO FINANCE ( SECC - 2 9 Which one of the following will decrease the net present ralue of a project? Servect one: a . increasing the value of each of the profects...

Identify emerging market MNCs and compare/contrast them with their developed nation competitors on such factors as sales volume, number of countries entered and brand rank.

To get an overall picture of each companys capital structure it is helpful to see a chart that summarizes the companys capital structure over the past decade. To obtain this chart, choose a company...

A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2032, was purchased on May 5, 2020, at 98.75. What is the approximate yield rate?

Use the unit step function to find an equation for each graph in terms of the function y = f (t), whose graph is given in Figure 7.R.1. y=f(t) to

A bank of induction motors consumes 36 kW at 0.78 pf lagging from a 60-Hz, 220

Fooling or convincing someone into giving you their password is called .

The following selected data are for Carducci Importers for its first three years of operations: Instructions Determine the missing amounts. TAKING IT FURTHER What information does the owner of a...

Listed in alphabetical order, the following selected items (in thousands) were taken from Parker Information Technology Company's December 31, 2017, financial statements: Instructions (a) In each...

Frank Petronick decided to start an accounting practice after graduation from university. The following is a list of events that occurred concerning Frank's practice during June 2017, the first month...

Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.3% r2 = 4.9% r3 = 5.6% r4 = 6.4% Assuming a constant real interest rate of 2 percent, what are the...

Use the z table to find the area that corresponds to each of the following z=56 z=1.32 -1.05 -2.18 0.01

Cullumber Inc.s common shares currently sell for $42 each. The firms management believes that its shares should really sell for $60 each. The firm just paid an annual dividend of $2 per share and...