Answer:
<h2>Crane Company</h2>
June Financial Reports
a) Cost of goods available for sale = $5,250
b) Moving-Average unit cost for:
i) June 1: = $5
ii) 12: = $4.75
iii) 15: = $4.75
iv) 23: = $5.75
v) 27: = $5.25
Step-by-step explanation:
a) Calculations:
Date Explanation Units Unit Cost Total Cost Moving Average Cost
June 1 Inventory 150 $4 $600 $4.000
12 Purchase 450 5 2,250 4.750
15 Sale 500 7 3,500 4.750
23 Purchase 400 6 2,400 5.750
27 Sale 420 8 3,360 5.250
30 Inventory 80
Cost of goods available for sale = Cost of Beginning Inventory + Cost of Purchases = $5,250 + ($600 + 2,250 + 2,400)
b) Moving-Average unit cost for:
i) June 1: Cost of goods available/Units of goods available = $5 ($600/150)
ii) 12: Cost of goods available/Units of goods available = $4.75 ($600 + 2,250/600)
iii) 15: Cost of goods available/Units of goods available = $4.75 ($475/100)
iv) 23: Cost of goods available/Units of goods available = $5.75 ($475 + 2,400)/500
v) 27: Cost of goods available/Units of goods available = $5.25 ($420/80)
