Exercises on inventory costing methods

Exercises on inventory costing methods

Question

The following information is available for Massey Company:

Assume Massey uses a periodic inventory system and has 5,250 units remaining at the end of the month. Total sales were $225,000

Procedure:

Calculate the cost of the closing inventory and the cost of sales

(a) using the FIFO method.

(b) Average cost method.

The Wang Company reports on his June: Total sales were $6,750,000.

Procedure

(a) (1) Calculate the cost of the closing inventory and the cost of sales based on the FIFO.

(b) Calculate cost of ending inventory and cost of goods sold based on FIFO. average selling price.

The fledgling company purchased four of his next inventory in June.

The physical inventory count on June 30 shows 750 units in stock.

Using the FIFO inventory method, the amounts allocated to cost of goods sold for June are:
Using the average cost method, the amount allocated to the goods will be: Inventory ending June 30th is as follows:
The following information is available from his July inventory records for The Queen Company.

• What is the average cost of items sold on Queen? (Rounding per unit is to two decimal places)
• Using the average cost inventory method, what should the stock be reported on the Queens balance sheet as of July 31?(Rounding per unit is (2 decimal places)?
• What stocks should I trade? Using the FIFO stock method, what stock would be reported on Queen’s balance sheet as of July 31?