Question

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. 125.)

Answer 1

	Date	Explanation	Units	Unit Cost	Total Cost
	1-Jun	Inventory	130	$5	$650
	12	Purchases	370	6	2,220
	23	Purchases	200	7	1,400
	30	Inventory	240
	Computation of weighted average cost per unit
	Date	Explanation	Units	Unit Cost	Total Cost
	1-Jun	Inventory	130	$5	$650
	12	Purchases	370	6	2,220
	23	Purchases	200	7	1,400
			700		4270
	weighted average cost = 4270/700				6.10
	computation of cost of ending inventory using -
	FIFO
	ending inventory =			1,640.00
		200*7+40*6
	LIFO
	ending inventory =			1,310.00
		130*5+110*6
	Average cost
	ending inventory =		240*6	1,440.00