Calculate the average cost per unit at june and determine

Question

Problem 1:

Ziad Company had a beginning inventory on January 1 of 330 units of Product 4-18-15 at a cost of $21 per unit. During the year, the following purchases were made.

Mar. 15

880 units

at

$24

Sept. 4

770 units

at

$27

July 20

550 units

at

$25

Dec. 2

220 units

at

$31

2,200 units were sold. Ziad Company uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate average cost per unit

Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average).

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

Problem 2:

You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory.

Date				Description		Units		Unit Cost or Selling Price
June		1		Beginning inventory		43		$39
June		4		Purchase		139		43
June		10		Sale		114		71
June		11		Sale return		15		71
June		18		Purchase		57		45
June		18		Purchase return		9		45
June		25		Sale		66		76
June		28		Purchase		33		49

Calculate cost per unit.

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Problem 3:

Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.

			Purchases
Date			Units		Unit Cost		Sales Units
July	1		185		$113
July	6						148
July	11		259		$128
July	14						111
July	21		296		$139
July	27						222

Calculate the average cost per unit at June 1, 6, 11, 14, 21 & 27.

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.