Question

Sarasota Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 5 sets at $655 each. On January 10, Sarasota purchased 8 units at $755 each. The company sold 2 units on January 8 and 4 units on January 15.

Incorrect answer iconYour answer is incorrect.

Compute the ending inventory under FIFO. (Round answer to 0 decimal places, e.g. 1,250.)

		FIFO
The ending inventory		$

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Incorrect answer iconYour answer is incorrect.

Compute the ending inventory under LIFO. (Round answer to 0 decimal places, e.g. 1,250.)

		LIFO
The ending inventory		$

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Compute the ending inventory under moving-average cost. (Round average-cost per unit to 2 decimal places, e.g. 12.52 and final answer to 0 decimal places, e.g. 1,250.)

		MOVING-AVERAGE COST
The ending inventory

Answer 1

		FIFO	LIFO	Moving Average Cost
	Ending Inventory	$    5,285	$    4,985	$    5,094
	Workings:
1		Purchases			Cost of goods sold			Inventory on hand
	FIFO	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost
	Jan-01							5	$        655	$    3,275
	Jan-08				2	$        655	$    1,310	3	$        655	$    1,965
	Jan-10	8	$        755	$    6,040				3	$        655	$    1,965
								8	$        755	$    6,040
	Jan-15				3	$        655	$    1,965	7	$        755	$    5,285
					1	$        755	$        755
	Totals	8		$    6,040	6		$    4,030	7		$    5,285
2		Purchases			Cost of goods sold			Inventory on hand
	LIFO	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost
	Jan-01							5	$        655	$    3,275
	Jan-08				2	$        655	$    1,310	3	$        655	$    1,965
	Jan-10	8	$        755	$    6,040				3	$        655	$    1,965
								8	$        755	$    6,040
	Jan-15				4	$        755	$    3,020	3	$        655	$    1,965
								4	$        755	$    3,020
	Totals	8		$    6,040	6		$    4,330	7		$    4,985
3		Purchases			Cost of goods sold			Inventory on hand
	Moving Average Cost	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost	Quantity	Cost per unit	Total cost
	Jan-01							5	$        655	$    3,275
	Jan-08				2	$        655	$    1,310	3	$        655	$    1,965
	Jan-10	8	$        755	$    6,040				3	$        655	$    1,965
								8	$        755	$    6,040
								11	$ 727.73	$    8,005
	Jan-15				4	$ 727.73	$    2,911	7	$ 727.73	$    5,094
	Totals	8		$    6,040	6		$    4,221	7		$    5,094