Question

Lisa Anderson Company was formed on December 1, 2019. The following information is available from Anderson's inventory records for Product BAP. Units 900 Unit Cost January 1, 2020 (beginning inventory) Purchases: January 5, 2020 January 25, 2020 February 16, 2020 March 26, 2020 1,800 1,950 1,200 900 A physical inventory on March 31, 2020, shows 2,400 units on hand.

Answer 1

LISA ANDERSON COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD MARCH 31,2020 Units Unit Cost Total Cost 300 S 1200 S 900 S 2400 8.00 2,400.00 9.00 10,800.00 10.00 S 9,000.00 $ 22,200.00 Purchases January 25,2017 Purchases February 16,2017 Purchases March 26,2017 Ending Inventory LISA ANDERSON COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER LIFO INVENTORY METHOD MARCH 31,2020 Unit Cost Units Total Cost 900 S 1500 S 2400 6.00 S 5,400.00 7.00 10,500.00 S 15,900.00 Beginning inventory January 5,2017 Ending Inventory Weighted Average Cost per Unit $7.91 Working Notes: No of Units Produced 900+1,800+1,950+1,200+900 = 6,750 Goods available for Sale = ( 900*S6+1,800*S7+1,950*$8+1,200*S9+900*S10) = $53,400 Weighted average cost per unit Goods available for Sale/ No of units produced $53,400/6,750 = $7.91