Return to Blackboard WileyPLUS imal.Akerountiaod irets ASSIGNMLNT RLSOURCLSCarla
ID: 2534213 • Letter: R
Question
Return to Blackboard WileyPLUS imal.Akerountiaod irets ASSIGNMLNT RLSOURCLSCarla Vista Co, began operatlons on July I.t uses a perperual Inventory system During July, the company had the following purchases and sales, 17 CH06 HOMFWORK d Problam 6-8A Units Unit Cost Sales Units July 1 $58 uly 5 Revlsw Score Review Result by Stiudy uly 1 573 July 1 July 21 July 27 578 Calcilate averge ast far each unit. (For calculation and ansers purpose rund unit costs to 2 decimal plces, e.g. 15.2) July 1 uly 6 July 11 July 14 July 21 July 2 OF ACCOUNTS X Your arswer is iricarrect. Try agar FIFO 2 m 3 LTFO For calculation and answers p?rpose round unit costs to 2 doc mal places, c 15.25 and cnding nventory D ermine the c ding inventory under a perpetual Inventory system using values to 0 decinmal places, c.g. 515) 1 ? erage and FIFO MOVING-AVERAGE LIFO The ending inventory under a popctunl inventary systenmExplanation / Answer
Calculation of average cost per each unit :
July 1st : 8 units @ 68 $ ; average cost = 68 $/8 units = 8.5 $
July 6th : 2 units @ 17 $ ; average cost = 17 $ / 2 units = 8.5 $ ( after deducting sales units )
July 11th : 2 units @ 17 $ + 3 units @ 73 $ = 5 units @ 90 $ per unit ( including purchases )
Average cost = 90 $/5 units = 18 $
July 14th : 2 units @ 36 $ ; average cost = 36 $/ 2 units = 18 $
july 21 st : 2 units @ 36 $ + 4 units @ 78 $ = 6 units @ 114 $
Average rating = 114 $ / 6 units = 19 $
July 27 : 3 units @ 57 $ ; average cost = 57 $ / 3 units = 19 $
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Under FIFO method :
Date. Purchase sale closing inventory
July units. Rate. Total. Units. Rate. Total. Units Rate total
1st 8. 8.5 68. - - - 8. 8.5 68
6th. - - - 6. 8.5. 51. 2 . 8.5 17
11th 3. 24.33. 73 - - - 2 8.5. 17
3 24.33 73
14 th. - - - 2 8.5 17 - - -
1. 24.33. 24.33 2 24.33. 48.67
21st 4 19.5 78 . - - - 2. 24.33 48.67
4. 19.5 78
27th - - - 2. 24.33. 48.67. - - -
1. 19.5. 19.5. 3 19.5. 58.5
COST OF INVENTORY USING FIFO METHOD = 3 UNITS @ 19.5 $ = 58.5 $
COST OF INVENTORY USING AVERAGE METHOD = 3 UNITS @ 19 $ = 57 $ ( FROM ans : 1)
Under LIFO method :
Date . Purchase sale . Closing balance
July Units Rate. Total. Units. Rate Total Units Rate Total
1st 8. 8.5 . 68. - - - 8 8.5 68
6th - - - 6 8.5 51 2 8.5 17
11th 3 24.33 73 - - - 2 8.5 17
3 24.33 73
14th - - - 3 24.33. 73 2 8.5 17
21st 4 19.5 78 - - - 2 8.5 17
4. 19.5. 78
27th - - - 3 19.5 58.5 2. 8.5 . 17
. 1. 19.5 19.5
COST of the inventory using LIFO method : 2 units @ 8.5 $ + 1 unit @ 19.5 $ = 36.5 $
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