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iPad 6:03 PM 98%-. edugen.wileyplus.com O These a Seeing Th...Four Frien. 30 Public... Personal a.... How To Ad.... Test result... Online Ser Kimmel, Accounting, 4e WileyPe nts (l Unread) CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Exercise 6-7 Kuchin Company reports the following for the month of June. ation Units Cost Date June 1 Exercise 6-5 185 571 772 371 1,480 5,139 8,492 $8 Exercise 6-6 Exercise 6-9 Exercise 6-11 12 Purchases 23 Purchases 30 Inventory Problem 6-3A (a1) our answer is correct. Review Results by Study Objective Calculate weighted-average unit cost. (Round answers to 3 decimal places, e.g. 5.125.) unit cost 9.89 Click if you would like to Show Work for this question: Open Show Work Attempts: 3 of 5 used (a2) Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFQ, and average-cost. (RoundExplanation / Answer
Summary of units Purchased Units Units Cost Total cost 1-Jun Inventory 185 8 1480 12-Jun Purchase 571 9 5139 23-Jun Purchase 772 11 8492 Total Units held during month 1528 15111 30-Jun Closing Inventory 371 units sold during month 1157 (1528-371) A) Under FiFo method Inventory purchased at last date will be outstanding in stock i.e 371 units of inventory purchased on 23 june will be held in stock Closing inventory in this case be valued at = 371 units x 11 = 4081 Cost of Goods sold in this case will be Total cost of Units held - cost of closing inventory = 15111 - 4081 = 11030 B) Under LIFO method inventory held in stock at beginning and purchased at initial dates will be held in stock in this, units which are purchased at later date are sold first i.e 185 units of beginning inventory and 186 units (371-185) of June 12 purchase will be heldd in stock at end Closing inventory in this case be valued at = 185 x 8 , = 1480 Add: 186 x 9 , = 1674 = 1480+1674 = 3154 Cost of Goods sold in this case will be Total cost of Units held - cost of closing inventory = 15111 - 3154 = 11957 c) Under Weighted average method closing stock can be simply calculated at weighted average unit cost rate = 371 units x 9.89 = 3669 Cost of Goods Sold can be calculated as = units sold x weighted average cost = 1157 x 9.89 = 11442
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