Date June 1 12 23 30 Explanation Inventory Purchase Purchase Inventory eTextbook and Media Units 130 Cost of the ending inventory 370 Cost of goods sold 200 Weighted-average unit cost $ 230 Unit Cost $ $5 $ 6 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) 7 Total Cost $650 Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to decimal places, e.g. 125.) FIFO 2,220 1,400 6.100 $ $ LIFO $ $ Average-cost
Date June 1 12 23 30 Explanation Inventory Purchase Purchase Inventory eTextbook and Media Units 130 Cost of the ending inventory 370 Cost of goods sold 200 Weighted-average unit cost $ 230 Unit Cost $ $5 $ 6 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) 7 Total Cost $650 Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to decimal places, e.g. 125.) FIFO 2,220 1,400 6.100 $ $ LIFO $ $ Average-cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![### Inventory and Cost Analysis
#### Inventory Transactions
| Date | Explanation | Units | Unit Cost | Total Cost |
|----------|-------------|-------|-----------|------------|
| June 1 | Inventory | 130 | $5 | $650 |
| June 12 | Purchase | 370 | $6 | $2,220 |
| June 23 | Purchase | 200 | $7 | $1,400 |
| June 30 | Inventory | 230 | | |
#### Weighted-Average Unit Cost Calculation
Calculate the weighted-average unit cost. **(Round answer to 3 decimal places, e.g., 5.125.)**
- **Weighted-average unit cost:** $6.100
#### Inventory Valuation Methods
Compute the cost of the ending inventory and the cost of goods sold using the FIFO, LIFO, and average-cost methods. **(Round answers to 0 decimal places, e.g., 125.)**
| | FIFO | LIFO | Average-cost |
|------------|-------|-------|--------------|
| Cost of the ending inventory | $ | $ | $ |
| Cost of goods sold | $ | $ | $ |
These tools and calculations are essential in accounting to determine the value of inventory and to assess cost of goods sold, impacting financial statements. Various methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and the average-cost method offer different perspectives and advantages in inventory valuation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4f1bd45-0584-49f4-9d42-60805b104190%2F0a984d41-f068-4cce-a598-fd6c7e4298a9%2Fevkcqjc_processed.png&w=3840&q=75)
Transcribed Image Text:### Inventory and Cost Analysis
#### Inventory Transactions
| Date | Explanation | Units | Unit Cost | Total Cost |
|----------|-------------|-------|-----------|------------|
| June 1 | Inventory | 130 | $5 | $650 |
| June 12 | Purchase | 370 | $6 | $2,220 |
| June 23 | Purchase | 200 | $7 | $1,400 |
| June 30 | Inventory | 230 | | |
#### Weighted-Average Unit Cost Calculation
Calculate the weighted-average unit cost. **(Round answer to 3 decimal places, e.g., 5.125.)**
- **Weighted-average unit cost:** $6.100
#### Inventory Valuation Methods
Compute the cost of the ending inventory and the cost of goods sold using the FIFO, LIFO, and average-cost methods. **(Round answers to 0 decimal places, e.g., 125.)**
| | FIFO | LIFO | Average-cost |
|------------|-------|-------|--------------|
| Cost of the ending inventory | $ | $ | $ |
| Cost of goods sold | $ | $ | $ |
These tools and calculations are essential in accounting to determine the value of inventory and to assess cost of goods sold, impacting financial statements. Various methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and the average-cost method offer different perspectives and advantages in inventory valuation.
Expert Solution
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Step 1: Introduction
The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO method, the older inventory is sold out first.
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