Question

Presented below is information related to Blowfish radios for the Marigold Company for the month of July.

Date		Transaction		Units In		Unit Cost		Total		Units Sold		Selling Price		Total
July 1		Balance		140		$4.40		$  616
6		Purchase		1,120		4.50		5,040
7		Sale								420		$7.00		$ 2,940
10		Sale								420		7.30		3,066
12		Purchase		560		4.80		2,688
15		Sale								280		7.40		2,072
18		Purchase		420		4.90		2,058
22		Sale								560		7.40		4,144
25		Purchase		700		4.88		3,416
30		Sale								280		7.50		2,100
		Totals		2,940				$13,818		1,960				$14,322

Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted-average cost

$

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Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Round answers to 0 decimal places, e.g. 6,578.)

(1) FIFO.
(2) LIFO.
(3) Weighted-average.

		(1) FIFO		(2) LIFO		(3) Weighted-Average
Ending Inventory at July 31		$		$		$

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Which of the methods used above will yield the lowest figure for gross profit for the income statement?

                                                                      LIFOFIFOWeighted-average method will yield the lowest gross profit.

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Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet?

                                                                      LIFOWeighted-averageFIFO method will yield the lowest ending inventory.

show work and explain

Answer 1