calculate gross profit using FIFO and weighted averagecurTeE ATTempt in ProgressFly-Buy Aircraft sells a wide variety of model aircrafts and uses a perpetual inventory system. On June 1, Fly Buy Aircraft had fiveCessna 560 model airplanes on hand at a unit cost of $105.00. During June and July, the company had the following purchases andsales for this airplane (all for cash):PurchasesSalesUnitsUnit CostUnitsUnit PriceJune 4$225.001815$120.0030250.00July 5125.003.270.0012270.0025Determine the cost of goods soid and ending inventory under a perpetual inventory system using (1) FIFO and (2) weightedYerage. (Round the weighted overage cost per unit to two decimal places, es 5.27 and final answers to 2 decimal places, eg 52.75)

FIFO and weighted average are methods of valuation of inventory. FIFO means First - in -First out,…

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calculate gross profit using FIFO and weighted average

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

calculate gross profit using FIFO and weighted average
curTeE ATTempt in Progress
Fly-Buy Aircraft sells a wide variety of model aircrafts and uses a perpetual inventory system. On June 1, Fly Buy Aircraft had five
Cessna 560 model airplanes on hand at a unit cost of $105.00. During June and July, the company had the following purchases and
sales for this airplane (all for cash):
Purchases
Sales
Units
Unit Cost
Units
Unit Price
June 4
$225.00
18
15
$120.00
30
250.00
July 5
125.00
3.
270.00
12
270.00
25
Determine the cost of goods soid and ending inventory under a perpetual inventory system using (1) FIFO and (2) weighted
Yerage. (Round the weighted overage cost per unit to two decimal places, es 5.27 and final answers to 2 decimal places, eg 52.75)

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