Refer to Short Exercises S-F:6-4 through S-F:6-6. After completing those exercises, answer the following questions.

1. Which inventory costing method produced the lowest gross profit? Why?
2. Which inventory costing method produced the highest gross profit? Why?
3. If costs had been declining instead of rising, which inventory costing method would have produced the highest gross profit? Why?

Data from S-F 6.4 Summer BBQ uses a perpetual inventory system to record inventory. All purchases and sales of merchandise inventory were on account. Company records indicate the following data for the month of June 30, 2024

Requirements

1. Prepare Summer BBQ’s perpetual inventory record assuming the company uses the FIFO inventory costing method.
2. Journalize the transactions for the month of June 2024.

Data from S-F 6.6

Summer BBQ uses a perpetual inventory system to record inventory. All purchases and sales of merchandise inventory were on account. Company records indicate the following data for the month of June 30, 2024

Requirements
1. Prepare Summer BBQ’s perpetual inventory record assuming the company uses the weighted-average inventory costing method. Round cost of goods sold and inventory to the nearest dollar.
2. Journalize the transactions for the month of June 2024

Transcribed Image Text:

Date June 1 5 13 23 30 Item Beginning merchandise inventory Purchase Sale Purchase Sale Quantity Unit Cost Unit Sale Price 6 8 10 14 6 $32 36 42 $98 98