Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are provided with the following information for Pina Colada Inc. for the month ended June 30, 2019. Pina Colada uses the periodic system for

You are provided with the following information for Pina Colada Inc. for the month ended June 30, 2019. Pina Colada uses the periodic system for inventory.

Date

Description

Quantity

Unit Cost or Selling Price

June 1 Beginning inventory 40 $40
June 4 Purchase 138 44
June 10 Sale 107 70
June 11 Sale return 13 70
June 18 Purchase 53 46
June 18 Purchase return 10 46
June 25 Sale 63 75
June 28 Purchase 26 50
Calculate weighted-average cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Weighted-average cost per unit $enter Weighted-average cost per unit in dollars rounded to 2 decimal places

Calculate ending inventory, cost of goods sold, 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. Use weighted-average unit cost rounded to 2 decimal places for computations.)

LIFO

FIFO

AVERAGE-COST

The ending inventory $enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 2 decimal places

The cost of goods sold $enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 2 decimal places

Gross profit $enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 0 decimal places

$enter a dollar amount rounded to 2 decimal places

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 rounded to 1 decimal place

% enter percentages rounded to 1 decimal place

% enter percentages rounded to 1 decimal place

%
Compare the results for the three cost flow assumptions and answer the following questions.
In this period of rising prices, LIFO gives the select an option

lowesthighest

cost of goods sold and the select an option

lowesthighest

gross profit. FIFO gives the select an option

lowesthighest

cost of goods sold and the select an option

highestlowest

gross profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Pricing Strategy Audit

Authors: Kent B. Monroe

1st Edition

1907766006, 978-1907766008

More Books

Students also viewed these Accounting questions

Question

Using a case study, undertake an AHP.

Answered: 1 week ago

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

7. Describe phases of multicultural identity development.

Answered: 1 week ago