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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.
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: Had 860 units on hand, @ $7 per unit Sold 400 units June June 6 June 8 June 12 June 15 June 21 June 24 June 30 Required: Purchased 1,000 units @ $11 per unit Purchased 400 units @ $9 per unit Sold 600 units Purchased 300 units @ $6 Sold 800 units Purchased 100 units @ $8 per unit per unit 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) (8 marks) (2 marks) b) LIFO. c) Which method resulted in the highest cost of goods sold for June? d) Which one will provide the highest ending inventory value for Hill's balance sheet? (2 marks)
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