Question

Buffalo Industries reports the following for the month of June. Date Explanation Units Unit Cost Total...

Buffalo Industries reports the following for the month of June.

Date

Explanation

Units

Unit Cost

Total Cost
June 1 Inventory 131 $5 $655
12 Purchases 359 6 2,154
23 Purchases 195 7 1,365
30 Inventory 267



A sale of 371 units occurred on June 15 for a selling price of $8 and a sale of 47 units on June 27 for $9.

Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.)

June 1

 $

June 12

 $

June 15

 $

June 23

 $

June 27

 $

Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 371 units occurred on June 15 for a selling price of $8 and a sale of 47 units on June 27 for $9. (Round answers to 0 decimal places, e.g. 125.)

FIFO

LIFO

Moving-Average
The cost of the ending inventory $ $ $
The cost of goods sold $ $ $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Buffalo industries

Average cost :

Date calculations per unit ($)
June 1 (131 units × $ 5)/131 units $ 5
June 12 ((131 units × $ 5)+(359 units × $ 6))/(131+359) units $ 5.733
June 15 ((490-371)units × $ 5.733)/(490-371) units $ 5.733
June 23 ((490-371) units × $ 5.733)+(195 units × $ 7)/(490-371+195) units $ 6.520
June 27 ((314-41) units × $ 6.520)/(314-47) units $ 6.520
June 30 same as June 27, because there is no Purchases in June 30 $ 6.520

Ending inventory and cost of goods sold :

FIFO LIFO Moving average
Ending inventory

(72 units × $ 6)+(195 units × $ 7)

= $ 1,797

(119 units × $ 5)+(147 units × $ 7)

= $ 1,624

267 units × $ 6.520

= $ 1,741

Cost of goods sold

(131 units × $ 5)+(240 units × 6)+(47 units × $ 6)

= $ 2,377

(359 units × $ 6)+(12 units × $ 5)+(47 units × $ 7)

= $ 2,543

(371 units × $ 5.733)+(47 units × $ 6.520)

= $ 2,433
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the average cost per unit, using a perpetual inventory system. Assume a sale of 420...
Calculate the average cost per unit, using a perpetual inventory system. Assume a sale of 420 units occurred on June 15 for a selling price of $8 and a sale of 50 units on June 27 for $9. (Round answers to 3 decimal places, e.g. 5.125.) Date Explanation Units Unit Cost Total Cost June 1 Inventory 150 $5 $750 12 Purchases 350 6 2,100 23 Purchases 240 7 1,680 30 Inventory 270 June 1 $enter a dollar amount 5 June...
Sage Hill Inc. uses a periodic inventory system reports the following for the month of June....
Sage Hill Inc. uses a periodic inventory system reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 120 $5 $600 12 Purchases 360 6 2,160 23 Purchases 210 7 1,470 30 Inventory 300 A sale of 340 units occurred on June 15 for a selling price of $9 and a sale of 50 units on June 27 for $10. (a) Partially correct answer iconYour answer is partially correct. Calculate the average...
Exercise 6-7 Cheyenne Corp. reports the following for the month of June. Date Explanation Units Unit...
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....
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 $ eTextbook and Media 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....
Cheyenne Corp. uses a periodic inventory system and reports the following for the month of June....
Cheyenne Corp. uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 130 $5 $ 650 12 Purchases 370 6 2,220 23 Purchases 200 7 1,400 30 Inventory 240 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) 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....
Mitchell Company’s record of transactions for the month of June was as follows. Purchases: Date                 Units         &nbs
Mitchell Company’s record of transactions for the month of June was as follows. Purchases: Date                 Units               Unit Cost June 1              600       @         3.00€ 4                        1,500    @         3.04 8                        800       @         3.20 13                     1,200     @        3.25 21                     700        @        3.30 29                     500        @        3.13                          -------                          5,300 Sales: Date              Units                Unit Cost June 3           500       @          5.00€ 9                    1,300     @          5.00 11                  600        @          5.50 23                  1,200     @          5.50 27                  900        @          6.00                      ----------                       4,500 Instructions (a) Assuming...
The following transactions occurred for the month of May. Date    Units Cost Total Sales Price...
The following transactions occurred for the month of May. Date    Units Cost Total Sales Price 1-May Beginning Balance 70 15 $1,050 2-May Purchase 75 11 $825 3-May Purchase 85 12 $1,020 10-May Sale 150 $35 15-May Purchase 40 18 $720 17-May Sale 50 $35 30-May Sale 40 $35 Create a perpetual inventory record then calculate the Cost of Goods Sold, Ending inventory, and Gross Profit for the month under FIFO Purchases Cost of Goods Sold Inventory on Hand Dates...
Concord Company uses a periodic system reports the following for the month of June. Units Unit...
Concord Company uses a periodic system reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5 $ 1,000 12 Purchase 450 6 2,700 23 Purchase 320 7 2,240 30 Inventory 120 Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO Cost of the ending inventory $ $ Cost of goods sold
The following transactions occurred for the month of May. Date Units Cost Total Sales Price 1-May...
The following transactions occurred for the month of May. Date Units Cost Total Sales Price 1-May Beginning Balance 80 14 $1,120 2-May Purchase 65 13 $845 3-May Purchase 85 16 $1,360 10-May Sale 130 $30 15-May Purchase 45 19 $855 17-May Sale 55 $30 30-May Sale 85 $30 Create a perpetual inventory record then calculate the Cost of Goods Sold, Ending inventory, and Gross Profit for the month under FIFO
Date Transaction # of Units Unit Cost Total Cost 1/1 Beg Balance 150 $30 $4,500 1/24...
Date Transaction # of Units Unit Cost Total Cost 1/1 Beg Balance 150 $30 $4,500 1/24 Purchase 70 33 2,310 2/22 Sale (100) - - 3/7 Purchase 90 35 3,150 4/10 Purchase 140 36 5,040 6/11 Sale (100) - - 9/28 Purchase 50 38 1,900 12/4 Sale (100) - - What is the cost of goods sold under a FIFO periodic inventory system? $10,500 $9,610 $7,290 $6,150 What is the ending inventory under a LIFO periodic inventory system? $10,500 $9,610...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT