Fenning Pty Ltd reports the following for the month of June: Required (a) Calculate cost of the

Question:

Fenning Pty Ltd reports the following for the month of June:

Required

(a) Calculate cost of the ending inventory and the cost of sales under (1) FIFO, (2) LIFO and (3) average cost.

(b) Which costing method gives the highest ending inventory and the highest cost of sales? Why?

(c) How do the average cost values for ending inventory and cost of sales compare with ending inventory and cost of sales for FIFO and LIFO?

(d) Explain why the average cost is not $12.

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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Question Posted: Sep 08, 2022 01:45 AM

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Fenning Pty Ltd reports the following for the month of June: Required (a) Calculate cost of the

Question:

Date June 1 12 23 30 Explanation Inventory Purchases Purchases Inventory Units 200 300 500 180 Unit cost $10 12 14 Total cost $2000 3600 7000

Step by Step Answer:

a FIFO Ending Inventory 200 units from June 1 10 per unit 180 units from June 30 12 per unit 380 uni...View the full answer

Financial Accounting Reporting Analysis And Decision Making

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