Question

Exercise 6-7 Cheyenne Corp. reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 123 $5 $ 615 12 Purchases 351 6 2,106 23 Purchases 194 7 1,358 30 Inventory 207 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $ Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $ $ $ The cost of goods sold $ $ $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

Schedule :

	Unit	Cost
Inventory	123	615
Purchase 12	351	2106
Purchase 23	194	1358
Total	668	4079

Weighted average unit cost = 4079/668 = 6.106 per unit

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost

	FIFO	LIFO	Average cost
Cost of ending inventory	(194*7+13*6) = 1436	(123*5+84*6)=1119	6.106*207 = 1264
Cost of goods sold	(4079-1436) = 2643	(4079-1119) = 2960	(4079-1264) = 2815