Will the results in (a) be higher or lower than the results
under FIFO and LIFO?
Whispering...
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Accounting
Will the results in (a) be higher or lower than the resultsunder FIFO and LIFO?
Whispering Winds Corp. uses the periodic inventory system andreports the following for the month of June.
Units
Unit Cost
Total Cost
June 1
Inventory
300
$4
$ 1,200
12
Purchase
600
9
5,400
23
Purchase
450
10
4,500
30
Inventory
150
Part 1
Calculate Weighted Average Unit Cost. (Round answerto 2 decimal places, e.g. 15.25.)
Weighted Average Unit Cost
$enter Weighted Average Unit Cost in dollars rounded to 2decimal places
eTextbook and Media
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Part 2
Compute the cost of the ending inventory and the cost of goodssold using the average-cost method. (Round answers to 0decimal places, e.g. 1,250.)
The ending inventory
$enter a dollar amount rounded to 0 decimal places
The cost of goods sold
$enter a dollar amount rounded to 0 decimal places
eTextbook and Media
Part 3
Will the results in (a) be higher or lower than the resultsunder FIFO and LIFO?
Ending inventory is select an option higherlower higher lowerthan FIFO $enter a dollar amount and select an option higherlowerhigher lower than LIFO $enter a dollar amount .
In contrast, cost of goods sold is select an option higherlowerhigher lower than FIFO $enter a dollar amount and select an optionhigherlower higher lower than LIFO $enter a dollar amount
Answer & Explanation
Solved by verified expert
4.4 Ratings (877 Votes)
Weighted Average Cost Costs of goods available for sale Units available for sale Weighted Average Cost 120054004500 300600450 822 FIFO LIFO Average Cost Ending Inventory 150000 60000
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