Problem 6-5A You are provided with the following information for Najera Inc. for
ID: 341195 • Letter: P
Question
Problem 6-5A You are provided with the following information for Najera Inc. for the month ended June 30, 2019. Najera uses the periodic method for inventory Unit Cost or Selling Price Description Quantity Date June 1 Beginning inventory June 4 Purchase June 10 Sale June 11 Sale return June 18 Purchase June 18 Purchase return June 25 Sale June 28 Purchase 40 135 110 15 70 70 46 46 75 50 10 65 30 Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Weighted-average cost per unitExplanation / Answer
Periodic inventory system Date Particulars Quantity Rate $ Total $ 1-Jun Beginning inventory 40 40 1,600 4-Jun Purchase 135 44 5,940 18-Jun Purchase 55 46 2,530 18-Jun purchases return (10) 46 (460) 28-Jun purchases 30 50 1,500 TOTAL 250 11,110 Average cost per unit ($ 11,110 / 250 units) = $ 44.44 per unit 1 LIFO method Sales revenue; $ $ 10-Jun (110 units x $ 70 ) 7,700 11-Jun Sales return ( 15 units x $ 70 ) (1,050) 25-Jun 65 units x $ 75 ) 4,875 Total sales revenue 11,525 Less: Cost of goods sold ( 30 units x $ 50) 1500 ( 45 units x $ 46) 2070 ( 85 units x $ 44) 3740 Total cost of goods -7310 Gross profit 4,215 Gross profit ( % ) 37% Endig inventory ( $ 11,110 - $ 7,310 ) 3,800 2 FIFO method Sales revenue; $ $ 10-Jun (110 units x $ 70 ) 7,700 11-Jun Sales return ( 15 units x $ 70 ) (1,050) 25-Jun 65 units x $ 75 ) 4,875 Total sales revenue 11,525 Less: Cost of goods sold ( 40 units x $ 40) 1600 ( 120 units x $ 44) 5280 Total cost of goods -6880 Gross profit 4,645 Gross profit ( % ) 40% Endig inventory ( $ 11,110 - $ 6,880 ) 4,230 2 Average cost method Sales revenue; $ $ 10-Jun (110 units x $ 70 ) 7,700 11-Jun Sales return ( 15 units x $ 70 ) (1,050) 25-Jun 65 units x $ 75 ) 4,875 Total sales revenue 11,525 Less: Cost of goods sold ( 160 units x $ 44.44) -7110.40 Gross profit 4,415 Gross profit ( % ) 38% Endig inventory ( $ 11,110 - $ 7,110.40) 3,999.60