Question
1. Use this inventory information for the month of June to answer questions 35 47. June 1 Beginning inventory 10 units @ $120 5 Purchase
1. Use this inventory information for the month of June to answer questions 35 47.
June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units
Assuming that a periodic inventory system is used, calculate the cost of ending inventory under the average-cost method.
2. Use this inventory information for the month of June to answer questions 35 47.
June 1 Beginning inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units
Using the Specific Identification Method ending inventory consists of 12 units from the June 5 purchase and 20 units from the June 21 purchase. Calculate the cost of ending inventory.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
