Exercise 8-17

The following information is for the inventory of mini-kettles at Monty 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		840				4.40		3,696
7		Sale											340				$7.40		$2,516
10		Sale											340				7.60		2,584
12		Purchase		450				5.00		2,250
15		Sale											230				8.00		1,840
18		Purchase		300				5.00		1,500
22		Sale											450				7.60		3,420
25		Purchase		500				4.40		2,200
30		Sale											230				7.40		1,702
Totals				2,230						$10,234			1,590						$12,062

Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.

Ending inventory

$Enter your answer in accordance to the question statement

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.)

Ending inventory

$Enter your answer in accordance to the question statement

Which method will yield the higher current ratio or gross profit?

Weighted AverageFIFO will yield the highest ending inventory
Weighted AverageFIFO gives a higher gross profit.