+XHBlackboard LearnXEasy Access to Internet ServicesCCsu.blackboard.com/webapps/blackboard/content/contentWrapper.jsp?course_id- 43047_1&displayName-McGCCentral Connecticut State UniversityMcGraw-Hill CONNECT SEC 09Spotter Corporation reported the following for June in its periodic inventory recordsTotal Cost$172.80572.40352.80Unit Cost$ 9.6010.6012.60Units18542832DescriptionBeginningDateJune 1Purchase11Purchase24Ending30Required:1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c)weighted average cost methods. (Round your intermediate calculations and final answers to 2decimal places.)Cost of EndingInventoryCost of GoodsSoldFIFOLIFOWeighted Average Cost2. Which of the three methods will lead to reporting the highest net income?FIFODLIFOWeighted Average Cost

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Asked Oct 13, 2019
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Part 1 

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McGraw-Hill CONNECT SEC 09
Spotter Corporation reported the following for June in its periodic inventory records
Total Cost
$172.80
572.40
352.80
Unit Cost
$ 9.60
10.60
12.60
Units
18
54
28
32
Description
Beginning
Date
June 1
Purchase
11
Purchase
24
Ending
30
Required:
1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c)
weighted average cost methods. (Round your intermediate calculations and final answers to 2
decimal places.)
Cost of Ending
Inventory
Cost of Goods
Sold
FIFO
LIFO
Weighted Average Cost
2. Which of the three methods will lead to reporting the highest net income?
FIFO
DLIFO
Weighted Average Cost
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+ X HBlackboard Learn X Easy Access to Internet Services CCsu.blackboard.com/webapps/blackboard/content/contentWrapper.jsp?course_id- 43047_1&displayName-McG C Central Connecticut State University McGraw-Hill CONNECT SEC 09 Spotter Corporation reported the following for June in its periodic inventory records Total Cost $172.80 572.40 352.80 Unit Cost $ 9.60 10.60 12.60 Units 18 54 28 32 Description Beginning Date June 1 Purchase 11 Purchase 24 Ending 30 Required: 1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Round your intermediate calculations and final answers to 2 decimal places.) Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost 2. Which of the three methods will lead to reporting the highest net income? FIFO DLIFO Weighted Average Cost

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Expert Answer

Step 1

a) FIFO method:

 

 

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PERIODIC INVENTORY - FIFO METHOD Unit cost Total cost Particulars Units Date Beginning June 11 Purchase June 24 Purchase $9.60 $172.80 June 1 18 $10.60 $572.40 54 $12.60 $352.80 28 Goods available for sale $1,098.00 100 $10.60 $42.40 4 Less: Ending inventory 28 $12.60 $352.80 $702.80 Cost of goods sold 68

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Step 2

b)

LIFO method:

 

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PERIODIC INVENTORY LIFO METHOD Unit cost Total cost Particulars Units Date Beginning June 11 Purchase June 24 Purchase $9.60 $172.80 June 1 18 $10.60 $572.40 $352.80 54 $12.60 28 $1,098.00 Goods available for sale 100 $10.60 $148.40 14 Less: Ending inventory $9.60 $172.80 18 Cost of goods sold 68 $776.80

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Step 3

c)

Weighted average method...

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PERIODIC INVENTORY - WEIGHTED AVERAGE METHOD Unit cost Total cost $9.60 $172.80 Particulars Units Date Beginning June 11 Purchase June 24 Purchase June 1 18 $10.60 $12.60 $572.40 54 $352.80 $1,098.00 $10.98$351.36 $10.98$746.64 NOTE: Weighted average cost per unit = $10.98 ($1,098/100 units) 28 Goods available for sale Less: Ending inventory Cost of goods sold 100 32 68

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