Question

Crane Company reports the following for the month of June.

Answer 1

Answer:

Crane Company

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)