Whispering Winds Corp. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 300 $4 $1,200 12 Purchase 600 $9 $5400 23 Purchase 450 $10 $4500 30 Inventory 150 Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.) Weighted Average Unit Cost ? Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 1,250.) The ending inventory ? The cost of goods sold ? Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending inventory is (higher or lower) than FIFO $? and (higher or lower) than LIFO $? In contrast, cost of goods sold is (higher or lower) than FIFO $? and (higher or lower) than LIFO $?
Whispering Winds Corp. reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 300 $4 $1,200 12 Purchase 600 $9 $5400 23 Purchase 450 $10 $4500 30 Inventory 150 Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.) Weighted Average Unit Cost ? Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 1,250.) The ending inventory ? The cost of goods sold ? Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending inventory is (higher or lower) than FIFO $? and (higher or lower) than LIFO $? In contrast, cost of goods sold is (higher or lower) than FIFO $? and (higher or lower) than LIFO $?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Whispering Winds Corp. reports the following for the month of June.
|
Units
|
Unit Cost
|
Total Cost
|
|||||||||
| June 1 | Inventory | 300 | $4 | $1,200 | |||||||
| 12 | Purchase | 600 | $9 | $5400 | |||||||
| 23 | Purchase | 450 | $10 | $4500 | |||||||
| 30 | Inventory | 150 |
Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.)
| Weighted Average Unit Cost |
?
|
Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 1,250.)
| The ending inventory |
?
|
|
| The cost of goods sold |
?
|
Will the results in (a) be higher or lower than the results under FIFO and LIFO?
|
Ending inventory is (higher or lower) than FIFO $? and (higher or lower) than LIFO $? |
|
In contrast, cost of goods sold is (higher or lower) than FIFO $? and (higher or lower) than LIFO $? |
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