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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
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: June 2 Had 860 units on hand, @ 57 per unit June 6 Sold 400 units June 8 Purchased 1.000 units @ $11 per unit June 12 Purchased 400 units @ $9 per unit June 15 Sold 600 units June 21 Purchased 300 units @ $6 per unit June 24 Sold 800 units June 30 Purchased 100 units @ S8 per unit Required: 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) b) LIFO. (8 marks c) Which method resulted in the highest cost of goods sold for June? (2 marks) d) Which one will provide the highest ending inventory value for Hill's balance sheet? (2 marks) (Total 20 marks)
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