Presented below is information related to Blowfish radios for the Sunland Compan

Question

Presented below is information related to Blowfish radios for the Sunland Company for the month of July Date Transaction Units In Unit Cost Total Units Sold Selling Price Total July 1 Balance 120 960 $4.10 $ 492 4.20 4,032 6 Purchase 360 7 Sale 10 Sale 12 Purchase 15 Sale 18 Purchase 22 Sale 25 Purchase 30 Sale $6.80 $ 2,448 360 7.102,556 7.20 1,728 7.203,456 480 4.50 2,160 4.60 1,656 4.582,748 240 360 480 600 240 1,680 7.30 1,752 $11,940 Totals 2,520 $11,088 Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted-average cost Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Round answers to O decimal places, e.g. 6,578. (1) FIFO. (2) LIFO. (3) Weighted-average. FIFO LIFO Weighted-Average Ending Inventory at July 31 , LINK TO TEXT Which of the methods used above will yield the lowest figure for gross profit for the inr statement? method will yield the lowest gross profit. Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? ethod will yield the lowest ending inventory Weighted-average FIFO LIFO By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

Explanation / Answer

1 Average cost per unit = $ 11,088 / 2,520 units = $ 4.40 per unit 2 Computation od ending inventory; a, FIFO Date Cost of goods sold; Units Units cost Total 7-Jul Sales                            120 4.1                       492                            240 4.2                    1,008 10-Jul Sales                            360 4.2                    1,512 15-Jul Sales                            240 4.2                    1,008 22-Jul Sales                            120 4.2                       504                            360 4.5                    1,620 30-Jul Sales                            120 4.5                       540                            120 4.6                       552 TOTAL                        1,680                    7,236 $ Total purchases                      11,088 Less: Cost of goods sold                       (7,236) Ending inventory ( 840 units)                        3,852 b, LIFO Date Cost of goods sold; Units Units cost Total sales                            600 4.58                    2,748                            360 4.6                    1,656                            480 4.5                    2,160                            240 4.2                    1,008 TOTAL                        1,680                    7,572 $ Total purchases                      11,088 Less: Cost of goods sold                       (7,572) Ending inventory ( 840 units)                        3,516 c, Weighted average Ending inventory ( 840 units) = 840 units x $ 4.40 = $ 3,696

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