Question: Hello, can someone please help me out with this exercise? I got the Weighted-average cost per unit correctly calculated and so confused for the rest.
Hello, can someone please help me out with this exercise? I got the Weighted-average cost per unit correctly calculated and so confused for the rest. Thanks beforehand!
Problem 6-5A (Part Level Submission)
You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.
| Date | Description | Quantity | Unit Cost or Selling Price | |||||
| June | 1 | Beginning inventory | 40 | $40 | ||||
| June | 4 | Purchase | 135 | 44 | ||||
| June | 10 | Sale | 110 | 70 | ||||
| June | 11 | Sale return | 15 | 70 | ||||
| June | 18 | Purchase | 55 | 46 | ||||
| June | 18 | Purchase return | 10 | 46 | ||||
| June | 25 | Sale | 65 | 75 | ||||
| June | 28 | Purchase | 30 | 50 | ||||
(a1) Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Your answer is correct. Weighted-average cost per unit $44.44
(a2) Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)
| LIFO | FIFO | AVERAGE-COST | ||||
| The ending inventory | $
| $
| $
| |||
| The cost of goods sold | $
| $
| $
| |||
| Gross profit | $
| $
| $
|
(a3) The parts of this question must be completed in order. This part will be available when you complete the part above.
(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
