Acc557 Financial Accounting: P6-3A Milo Company had a beginning inventory of 400 units

Acc557 Financial Accounting

Problem 6-3A
Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of $8 per unit. During the year, purchases were:
20-Feb 300 @ $9
12-Aug 600 @ $11
5-May 500 @ $10
8-Dec 200 @ $12
Milo Company uses a periodic inventory system. Sales totaled 1,500 units.

Instructions:
(a) Determine the cost of goods available for sale.
(b) Calculate the weighted-average unit cost. (Round answer to 2 decimal places, e.g. $2.25.)
(c) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. $2,120.)
(d) Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement?
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