purchases in june June 1 - 500 @ $12, June 6 - 1800 @11, June 14 - 500@$10, June
ID: 2466279 • Letter: P
Question
purchases in june
June 1 - 500 @ $12, June 6 - 1800 @11, June 14 - 500@$10, June 20 - 500 @$13
Sales in June
June 9 - 1000@15, June 17 - 400@$16, June 21 - 1,400 @18
a) calculate ending inventory at june 30 under the periodic weighted average method
b) compute ending inventory at june 30 under the periodic fifo inventory pricing method
c) compute ending inventory at june 30 under the perpetual lifo inventory pricing method
d) prepare journal entries at june 30 under periodic fifo inventory pricin method
Explanation / Answer
Purchases
Date
Units
Rate
Price
Jun-01
500
$ 12.00
$ 6,000.00
Jun-06
1800
$ 11.00
$ 19,800.00
Jun-14
500
$ 10.00
$ 5,000.00
Jun-20
500
$ 13.00
$ 6,500.00
3300
$ 37,300.00
Sales
Date
Units
Rate
Price
Jun-09
1000
$ 15.00
$ 15,000.00
Jun-17
400
$ 16.00
$ 6,400.00
Jun-21
1400
$ 18.00
$ 25,200.00
2800
$ 46,600.00
Ending inventory units = Total units purchased – Total units sold = 3300 – 2800 = 500 units
a)
Weighted average price per unit = Total purchase price / Units purchased = $37,300 / 3,300 units = $11.30 per unit
Value of ending inventory = $11.30 * 500 units = $5,651.52
b)
Value per unit as per FIFO pricing method = $13 per unit (Rate of last purchase)
Value of ending inventory = $13 * 500 units = $6,500
c)
Value per unit as per LIFO pricing method = $12 per unit (Rate of first purchase)
Value of ending inventory = $12 * 500 units = $6,000
d)
Inventory (Ending Inventory)
$6,500
Cost of Goods Sold (Balancing Figure)
$30,800
Purchases
$37,300
Purchases
Date
Units
Rate
Price
Jun-01
500
$ 12.00
$ 6,000.00
Jun-06
1800
$ 11.00
$ 19,800.00
Jun-14
500
$ 10.00
$ 5,000.00
Jun-20
500
$ 13.00
$ 6,500.00
3300
$ 37,300.00
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