current attempt in progress\njohnson company reports the following for the month of june.\ndate explanation…

current attempt in progress\njohnson company reports the following for the month of june.\ndate explanation units unit cost total cost\njune 1 inventory 225 $5 $1,125\n12 purchase 525 6 3,150\n23 purchase 750 7 5,250\n30 inventory 280\n(a)\ncompute the cost of the ending inventory and the cost of goods sold under fifo, lifo, and average - cost. (round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)\nfifo lifo average - cost\nending inventory $ $ $\ncost of goods sold $ $ $\netextbook and media

current attempt in progress\njohnson company reports the following for the month of june.\ndate explanation units unit cost total cost\njune 1 inventory 225 $5 $1,125\n12 purchase 525 6 3,150\n23 purchase 750 7 5,250\n30 inventory 280\n(a)\ncompute the cost of the ending inventory and the cost of goods sold under fifo, lifo, and average - cost. (round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)\nfifo lifo average - cost\nending inventory $ $ $\ncost of goods sold $ $ $\netextbook and media

Answer

Explanation:

Step1: Calculate total units available

Total units available = 225 + 525+750 = 1500 units

Step2: Calculate units sold

Units sold = 1500 - 280 = 1220 units

Step3: FIFO - Ending inventory cost

Under FIFO, ending inventory comes from the most recent purchases. So, 280 units from the June 23 purchase. Ending inventory cost = 280×7 = $1960

Step4: FIFO - Cost of goods sold

Cost of goods sold = (225×5)+(525×6)+(1220 - 225 - 525)×7 = 1125+3150+(470×7) = 1125 + 3150+3290 = $7565

Step5: LIFO - Ending inventory cost

Under LIFO, ending inventory comes from the earliest purchases. 225 units from June 1 inventory and 280 - 225 = 55 units from June 12 purchase. Ending inventory cost = (225×5)+(55×6) = 1125+330 = $1455

Step6: LIFO - Cost of goods sold

Cost of goods sold = (750×7)+(525×6)+(1220 - 750 - 525)×5 = 5250+3150+( - 55)×5 = 5250+3150 - 275 = $8125

Step7: Average - cost per unit

Total cost = 1125+3150+5250 = $9525 Average - cost per unit = $\frac{9525}{1500}$ = $6.35

Step8: Average - cost - Ending inventory cost

Ending inventory cost = 280×6.35 = $1778

Step9: Average - cost - Cost of goods sold

Cost of goods sold = 1220×6.35 = $7747

Answer:

FIFO LIFO AVERAGE - COST
Ending inventory $1960 $1455 $1778
Cost of goods sold $7565 $8125 $7747