Hill Marble buys and then resells a single product. The product, a marble, is a commodity...

 

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Hill Marble buys and then resells a single product. The product, a marble, is a commodity and is subject to rather severe cost fluctuations. Some information concerning Hill Marble inventory activity during the month of June 2020 follows: Had 860 units on hand, @ $7 per unit Sold 400 units June June 6 June 8 June 12 June 15 June 21 June 24 June 30 Required: Purchased 1,000 units @ $11 per unit Purchased 400 units @ $9 per unit Sold 600 units Purchased 300 units @ $6 Sold 800 units Purchased 100 units @ $8 per unit per unit Hill Marble uses a periodic inventory system. Calculate cost of goods sold (in both units and cost) for the month of June 2020 and ending inventory (units and cost) at June 30, 2020: a) FIFO. (8 marks) (8 marks) (2 marks) b) LIFO. c) Which method resulted in the highest cost of goods sold for June? d) Which one will provide the highest ending inventory value for Hill's balance sheet? (2 marks) Hill Marble buys and then resells a single product. The product, a marble, is a commodity and is subject to rather severe cost fluctuations. Some information concerning Hill Marble inventory activity during the month of June 2020 follows: Had 860 units on hand, @ $7 per unit Sold 400 units June June 6 June 8 June 12 June 15 June 21 June 24 June 30 Required: Purchased 1,000 units @ $11 per unit Purchased 400 units @ $9 per unit Sold 600 units Purchased 300 units @ $6 Sold 800 units Purchased 100 units @ $8 per unit per unit Hill Marble uses a periodic inventory system. Calculate cost of goods sold (in both units and cost) for the month of June 2020 and ending inventory (units and cost) at June 30, 2020: a) FIFO. (8 marks) (8 marks) (2 marks) b) LIFO. c) Which method resulted in the highest cost of goods sold for June? d) Which one will provide the highest ending inventory value for Hill's balance sheet? (2 marks)

Answer rating: 100% (QA)

Solution To calculate the cost of goods sold COGS and ending inventory using the FIFO FirstInFirstOu... View the full answer