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3 years ago

9

Jeters Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 120 $5

$ 600 12 Purchase 370 6 2,220 23 Purchase 200 7 1,400 30 Inventory 230 Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round average unit cost to three decimal places.) (b) Which costing method gives the highest ending inventory

1 answer:

HACTEHA [7]3 years ago

8 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

June 1:

Inventory: 120 units for $5= $600

June 12:

Purchase: 370units for $6= $2,220

June 23:

Purchase: 200 units for $7= $1,400

June 30:

Ending Inventory 230 units

Units sold= 460

<u>Under FIFO method, the first units-in are the first to go out. Therefore, the ending inventory has the value of the last units purchased.</u>

<u />

Inventory= 200*7 + 30*6= $1,580

COGS= 120*5 + 340*6= $2,640

<u>Under LIFO method, the lasts units-in are the first out. </u>

Inventory= 120*5 + 110*6= $1,260

COGS= 260*6 + 200*7= $2,960

<u>Under the average cost method, we calculate an average buying price and then calculate the ending inventory and cost of goods sold:</u>

<u />

Average price= (5 +6 +7)/3= 6

Inventory= 230*6= $1,380

COGS= 460*6= $2,760

The highest ending inventory is from FIFO method.

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Answer:

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Explanation:

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So,

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3 years ago

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Answer:

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3 years ago

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<span>Define what is meant by the phrase "planning materiality threshold".

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Answer:

$BEP_{dollars} = 500,000$

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$\frac{Contribution \:Margin}{Sales\: Revenue} = Contribution\: Margin\: Ratio$

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Per dollar of sales 25 cents are available to pay the fixed cost.

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Answer:

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