The Salman company has provided the following information about beginning balance and purchases or direct material for the month of June, 2017June 01: Beginning balance; 800 units @ $20 per unit.June 05: Purchases; 1200 units @ $22 per unit.June 09: Purchases; 1600 units @ $24 per unit.June 11: Purchases; 400 units @ $25 per unit.June 15 Purchases 3,600 units ("@ $11.20 per units.June 1 7: Purchases; 4,000 units @ $13.50 per units.June 21: Purchases; 5,000 units @ $10.80 per units.June 27: Purchases; 2,000 units @ $10.20 per units.At the end of the June 2017, the company makes a physical measure of material and finds that 13,100 units of material were sold with the description that 10,000 units @ $30 per unit and the remaining were sold @ $34 per unit with 10% discount on each.Compute inventory on June 301h, 2017, cost of goods sold for the month of June and determine the gross profit using following inventory costing methods:First in, first out (FIFO) methodLast in, first out (LIFO) methodAverage cost method

Value of beginning balance=Units×Per unit=800×$20=$16,000

Answered: The Salman company has provided the…

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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The Salman company has provided the following information about beginning balance and purchases or direct material for the month of June, 2017

June 01: Beginning balance; 800 units @ $20 per unit.
June 05: Purchases; 1200 units @ $22 per unit.
June 09: Purchases; 1600 units @ $24 per unit.
June 11: Purchases; 400 units @ $25 per unit.
June 15 Purchases 3,600 units ("@ $11.20 per units.
June 1 7: Purchases; 4,000 units @ $13.50 per units.
June 21: Purchases; 5,000 units @ $10.80 per units.
June 27: Purchases; 2,000 units @ $10.20 per units.

At the end of the June 2017, the company makes a physical measure of material and finds that 13,100 units of material were sold with the description that 10,000 units @ $30 per unit and the remaining were sold @ $34 per unit with 10% discount on each.

Compute inventory on June 30^1h, 2017, cost of goods sold for the month of June and determine the gross profit using following inventory costing methods:

First in, first out (FIFO) method
Last in, first out (LIFO) method
Average cost method

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