You are provided with the following information for Lily Inc. for the month ended June 30, 2020.
Question:
You are provided with the following information for Lily Inc. for the month ended June 30, 2020. Lily uses the periodic method for inventory.
Date | Description | Quantity | Unit Cost or | |||||
---|---|---|---|---|---|---|---|---|
June | 1 | Beginning inventory | 39 | $40 | ||||
June | 4 | Purchase | 135 | 44 | ||||
June | 10 | Sale | 112 | 71 | ||||
June | 11 | Sale return | 18 | 71 | ||||
June | 18 | Purchase | 56 | 45 | ||||
June | 18 | Purchase return | 12 | 45 | ||||
June | 25 | Sale | 66 | 76 | ||||
June | 28 | Purchase | 25 | 48 |
(a1)
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- Correct Answer
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Your answer is incorrect.
Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Weighted-average cost per unit | $Enter the weighted-average cost per unit in dollars |
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(a2)
Calculate ending inventory, cost of goods sold, and 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.)
LIFO | FIFO | AVERAGE-COST | ||||
---|---|---|---|---|---|---|
The ending inventory | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | |||
The cost of goods sold | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | |||
Gross profit | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount |
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(a3)
Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)
LIFO | FIFO | AVERAGE-COST | |||||||
---|---|---|---|---|---|---|---|---|---|
Gross profit rate | Enter percentages | % | Enter percentages | % | Enter percentages | % |
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(b)
Compare the results for the three cost flow assumptions and answer the following questions.
In this period of rising prices, Select a cost flow assumption LIFOAverage-cost FIFO gives the highest cost of goods sold, and the Select an option lowest-highest gross profit. Select a cost flow assumption Average-costFIFOLIFO gives the lowest cost of goods sold and the Select an option highest lowest gross profit. |
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso