Chapter 6, Problem 6.1BP

Calculate ending inventory and cost of goods sold for four inventory methods (LO6–3)

PROBLEMS: SET B

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June:

  Requited:

  1.    Calculate ending inventory and cost of goods sold at June 30, using the specific identification method The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and seven fishing reels from the June 21 purchase.

  2.    Using FIFO, calculate ending inventory and cost of goods sold at June 30.

  3.    Using LIFO, calculate ending inventory arid cost of goods sold at June 30.

  4.    Using weighted average cost, calculate ending inventory and cost of goods sold at June 30.