Question

# Crane Company reports the following for the month of June. Units Unit Cost Total Cost June...

Crane Company reports the following for the month of June.

 Units Unit Cost Total Cost June 1 Inventory 200 \$4 \$ 800 12 Purchase 400 5 2,000 23 Purchase 400 6 2,400 30 Inventory 100

Calulate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.)

 Weighted Average Unit Cost \$

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Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 1,250.)

 The ending inventory \$ The cost of goods sold \$

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Will the results in (a) be higher or lower than the results under FIFO and LIFO?

 Ending inventory is                                                                       higherlower than FIFO \$   and                                                                       higherlower than LIFO \$  . In contrast, cost of goods sold is                                                                       higherlower than FIFO \$   and                                                                       higherlower than LIFO \$  .

 1-Jun Inventory 200 * 4 = 800 12-Jun Purchase 400 * 5 = 2000 23-Jun Purchase 400 * 6 = 2400 total 1000 5200 Weighted average unti cost 5.2 The ending inventory 520 The cost of goods sold 4680 ending inventory is lower than FIFO and higher than LIFO in contrast cost of goods sold is higher than FIFO and lower than LIFO

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