Calculaie inventory and cosi of goods sold using nva cosn flow inerhods in a perperual inventory system. E6. (LO 5) Howsham Ltd. reports the following for the month of June. Date Units Unit Cost Total Cost Explanation Inventory Purchase June 1 200 £5 £1,000 12 300 6. 1,800 23 Purchase 500 3,500 30 Inventory 160 instructions a. Calculate the cost of the ending inventory and the cost of goods sold for (1) FIFO and (2) moving- average cost, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for a selling price of £8 and a salc of 440 units on June 27 for £9. E Why is the average unit cost noi £6 (£5 + £6 + £7) + 3 = £6]? *E6. 16 (LO S) Information about Zhu Boaids is presented in E6.4. Additional data regarding Zhu's sates of Xpert snowboards are provided below. Assume that Zhu uses a perpetual inventory system. Apply cast flow merhods to perperual records. Date Unit Price Total Revenue Explanation Sale Units HKS1,990 Sept. 5 Sept. 16 Sept. 29 12 HKS 23,880 Sale 50 2,030 101.500 Sale 59 2,090 123,310 Totals 121 HK$248,690 Instructions a. Compute ending inventory at September 30 using FIFO and moving-average cost. lo. Which inventory cost flow method (FIFO, moving-average cost) gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventory values?
Calculaie inventory and cosi of goods sold using nva cosn flow inerhods in a perperual inventory system. E6. (LO 5) Howsham Ltd. reports the following for the month of June. Date Units Unit Cost Total Cost Explanation Inventory Purchase June 1 200 £5 £1,000 12 300 6. 1,800 23 Purchase 500 3,500 30 Inventory 160 instructions a. Calculate the cost of the ending inventory and the cost of goods sold for (1) FIFO and (2) moving- average cost, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for a selling price of £8 and a salc of 440 units on June 27 for £9. E Why is the average unit cost noi £6 (£5 + £6 + £7) + 3 = £6]? *E6. 16 (LO S) Information about Zhu Boaids is presented in E6.4. Additional data regarding Zhu's sates of Xpert snowboards are provided below. Assume that Zhu uses a perpetual inventory system. Apply cast flow merhods to perperual records. Date Unit Price Total Revenue Explanation Sale Units HKS1,990 Sept. 5 Sept. 16 Sept. 29 12 HKS 23,880 Sale 50 2,030 101.500 Sale 59 2,090 123,310 Totals 121 HK$248,690 Instructions a. Compute ending inventory at September 30 using FIFO and moving-average cost. lo. Which inventory cost flow method (FIFO, moving-average cost) gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventory values?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Calculaie inventory and cosi of goods
sold using nva cosn flow inerhods in a
perperual inventory system.
E6. (LO 5) Howsham Ltd. reports the following for the month of June.
Date
Units
Unit Cost
Total Cost
Explanation
Inventory
Purchase
June 1
200
£5
£1,000
12
300
6.
1,800
23
Purchase
500
3,500
30
Inventory
160
instructions
a. Calculate the cost of the ending inventory and the cost of goods sold for (1) FIFO and (2) moving-
average cost, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for
a selling price of £8 and a salc of 440 units on June 27 for £9.
E Why is the average unit cost noi £6 (£5 + £6 + £7) + 3 = £6]?
*E6. 16 (LO S) Information about Zhu Boaids is presented in E6.4. Additional data regarding Zhu's sates
of Xpert snowboards are provided below. Assume that Zhu uses a perpetual inventory system.
Apply cast flow merhods
to perperual records.
Date
Unit Price
Total Revenue
Explanation
Sale
Units
HKS1,990
Sept. 5
Sept. 16
Sept. 29
12
HKS 23,880
Sale
50
2,030
101.500
Sale
59
2,090
123,310
Totals
121
HK$248,690
Instructions
a. Compute ending inventory at September 30 using FIFO and moving-average cost.
lo. Which inventory cost flow method (FIFO, moving-average cost) gives the same ending inventory
value under both periodic and perpetual? Which method gives different ending inventory values?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33f943b6-3f1d-45a7-a91a-8977bb3eb655%2F30fc9296-abce-45f5-957f-cbd6e2363b86%2F0hfutwa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculaie inventory and cosi of goods
sold using nva cosn flow inerhods in a
perperual inventory system.
E6. (LO 5) Howsham Ltd. reports the following for the month of June.
Date
Units
Unit Cost
Total Cost
Explanation
Inventory
Purchase
June 1
200
£5
£1,000
12
300
6.
1,800
23
Purchase
500
3,500
30
Inventory
160
instructions
a. Calculate the cost of the ending inventory and the cost of goods sold for (1) FIFO and (2) moving-
average cost, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for
a selling price of £8 and a salc of 440 units on June 27 for £9.
E Why is the average unit cost noi £6 (£5 + £6 + £7) + 3 = £6]?
*E6. 16 (LO S) Information about Zhu Boaids is presented in E6.4. Additional data regarding Zhu's sates
of Xpert snowboards are provided below. Assume that Zhu uses a perpetual inventory system.
Apply cast flow merhods
to perperual records.
Date
Unit Price
Total Revenue
Explanation
Sale
Units
HKS1,990
Sept. 5
Sept. 16
Sept. 29
12
HKS 23,880
Sale
50
2,030
101.500
Sale
59
2,090
123,310
Totals
121
HK$248,690
Instructions
a. Compute ending inventory at September 30 using FIFO and moving-average cost.
lo. Which inventory cost flow method (FIFO, moving-average cost) gives the same ending inventory
value under both periodic and perpetual? Which method gives different ending inventory values?
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