Problem 6-3A
Ziad Company had a beginning inventory on January 1 of 165 units of Product 4-18-15 at a cost of $18 per unit. During the year, the following purchases were made.
Mar. 15 440 units at $22 Sept. 4 385 units at $24
July 20 275 units at $23 Dec. 2 110 units at $28
1,100 units were sold. Ziad Company uses a periodic inventory system.
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Determine the cost of goods available for sale.
The cost of goods available for sale $
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Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.25.)
Average cost per unit $
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Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). (Round answers to 0 decimal places, e.g. 1,250.)
FIFO LIFO AVERAGE-COST
The ending inventory $
$
$
The cost of goods sold $
$
$
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Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?
(1)
results in the highest inventory amount, $ .
(2)
produces the highest cost of goods sold, $ .
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Problem 6-5A
You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory.
Date Description Units Unit Cost or Selling Price
June 1 Beginning inventory 42 $41
June 4 Purchase 138 45
June 10 Sale 108 68
June 11 Sale return 16 68
June 18 Purchase 55 46
June 18 Purchase return 9 46
June 25 Sale 63 72
June 28 Purchase 28 50
Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Weighted-average cost per unit $
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Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250.)
LIFO FIFO AVERAGE-COST
The ending inventory $
$
$
The cost of goods sold $
$
$
Gross profit $
$
$
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Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)
LIFO FIFO AVERAGE-COST
Gross profit rate
%
%
%
Problem 6-9A
Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
Purchases
Date Units Unit Cost Sales Units
July 1 25 $122
July 6 20
July 11 35 $140
July 14 15
July 21 40 $149
July 27 30
Calculate the average cost per unit at June 1, 6, 11, 14, 21 & 27. (Round answers to 3 decimal places, e.g. $105.250.)
Average cost for each unit
July 1 $
July 6 $
July 11 $
July 14 $
July 21 $
July 27 $
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Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO. (Round answers to 0 decimal places, e.g. $2,150.)
FIFO MOVING-AVERAGE LIFO
The ending inventory under a perpetual inventory system $
$
$
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