Problem 6-5A (Part Level Submission) You are provided with the following informa
ID: 2470519 • Letter: P
Question
Problem 6-5A (Part Level Submission)
You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.
Date
Description
Quantity
Unit Cost or
Selling Price
June
1
Beginning inventory
45
$42
June
4
Purchase
136
46
June
10
Sale
113
69
June
11
Sale return
15
69
June
18
Purchase
54
48
June
18
Purchase return
12
48
June
25
Sale
68
74
June
28
Purchase
35
52
(a1)
Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Weighted-average cost per unit
$46.44
(a2)
Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)
LIFO
FIFO
AVERAGE-COST
The ending inventory
$
$
$
The cost of goods sold
$
$
$
Gross profit
$
$
$
Problem 6-5A (Part Level Submission)
You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.
Date
Description
Quantity
Unit Cost or
Selling Price
June
1
Beginning inventory
45
$42
June
4
Purchase
136
46
June
10
Sale
113
69
June
11
Sale return
15
69
June
18
Purchase
54
48
June
18
Purchase return
12
48
June
25
Sale
68
74
June
28
Purchase
35
52
Explanation / Answer
1) Number of units available for sale
= units in beginning inventory + Units purchased
= 45 + (136 + 54 - 12 + 35)
= 258 units
Cost of the goods available for sale =
=45*42+136*46+54*48-12*48+35*52 = $11982
Weighted average cost = $11982 / 258 units = $46.44 per unit
2)
Number of units sold = 113-15+68 = 166 units
Number of units available for sale =258
Number of units in ending inventory
= Number of units available for sale – Number of units sold
= 258 units – 166 units
= 92 units
Sales = 113*69 – 15*69 + 68*74 = $11794
FIFO
Cost of ending Inventory = 35*52 + 54*48 + (92-35-54)*46 = $4550
Cost of goods sold = 45*42 + (166-45) *46 = $7456
Gross profit = Sales – Cost of goods sold = $11794 - $7456 = $4338
LIFO
Cost of ending inventory = 45*42 + (92-45)*46 = $4052
Cost of goods sold = 35*52+(54-12)*48 + (166-35-42)*46 = $7930
Gross Profit = $11794 - $7930 = $3864
Weighted Average
Cost of ending inventory = 92*46.44 = $4272.48
Cost of goods sold = 166*46.44 = $7709.04
Gross Profit = $11794 - $7709.04 = $4084.96
LIFO FIFO Weighted Average Ending Inventory $ 4,052.00 $ 4,550.00 $4,272.48 Cost of goods sold $ 7,930.00 $ 7,456.00 $7,709.04 Gross profit $ 3,864.00 $ 4,338.00 $4,084.96