The following information is for the inventory of mini-kettles at Concord Company Limited for the month of
Question:
The following information is for the inventory of mini-kettles at Concord Company Limited for the month of May:
Date | Transaction | Units In | Unit Cost | Total | Units Sold | Unit Price | Total | |||||||||||||
May 1 | Balance | 140 | $4.20 | $588 | ||||||||||||||||
6 | Purchase | 850 | 4.20 | 3,570 | ||||||||||||||||
7 | Sale | 320 | $7.20 | $2,304 | ||||||||||||||||
10 | Sale | 320 | 7.40 | 2,368 | ||||||||||||||||
12 | Purchase | 420 | 5.00 | 2,100 | ||||||||||||||||
15 | Sale | 240 | 8.00 | 1,920 | ||||||||||||||||
18 | Purchase | 320 | 4.80 | 1,536 | ||||||||||||||||
22 | Sale | 420 | 7.80 | 3,276 | ||||||||||||||||
25 | Purchase | 500 | 4.40 | 2,200 | ||||||||||||||||
30 | Sale | 240 | 7.60 | 1,824 | ||||||||||||||||
Totals | 2,230 | $9,994 | 1,540 | $11,692 |
A. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.
B. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)
C. Which method will yield the higher current ratio or gross profit?
______ will yield the highest ending inventory
______ gives a higher gross profit.
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy