Question

Exercise 8-12 (Part Level Submission) Culver Company was formed on December 1, 2016. The following information is available from Culver’s inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 684 $ 6.00 Purchases:    January 5, 2017 1,368 7.00    January 25, 2017 1,482 8.00    February 16, 2017 912 9.00    March 26, 2017 684 10.00 A physical inventory on March 31, 2017, shows 1,824 units on hand.

(a) Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method

Answer 1

Answer

• Requirement [a]

Under FIFO, units are sold on first come first sold basis,
Hence, ending inventory must be available from ‘latest’ purchases.

UNDER FIFO INVENTORY METHOD
March 31, 2017
	Units	Unit Cost	Total Cost
Mar 26, 2017	684	$10	$6,840
Feb 16, 2017	912	$9	$8,208
Jan 25, 2017	228	$8	$1,824
March 31, 2017, inventory	1824		$16,872