Hill Marble buys and then resells a single product. The product, a marble, is a...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Hill Marble buys and then resells a single product. The product, a marble, is a commodity and is subject to rather severe cost fluctuations. Some information concerning Hill Marble inventory activity during the month of June 2020 follows:
June 2 Had 860 units on hand, @ $7 per unit
June 6 Sold 400 units
June 8 Purchased 1,000 units @ $11 per unit
June 12 Purchased 400 units @ $9 per unit
June 15 Sold 600 units
June 21 Purchased 300 units @ $6 per unit
June 24 Sold 800 units
June 30 Purchased 100 units @ $8 per unit
Required:
Hill Marble uses a periodic inventory system. Calculate cost of goods sold (in both units and cost) for the month of June 2020 and ending inventory (units and cost) at June 30, 2020:
FIFO. (8 marks)
LIFO. (8 marks)
Which method resulted in the highest cost of goods sold for June? (2 marks)
Which one will provide the highest ending inventory value for Hill's balance sheet?
(2 marks)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
