1 | Average cost method: | ||||||
Inventory is valued at average cost | |||||||
Average cost=Total cost of units available for sale/Total units available for sale | |||||||
Units | Unit cost | Total cost | |||||
Beg. Inventory | 165 | 300 | 49500 | ||||
Purchases: | |||||||
April | 205 | 305 | 62525 | ||||
August | 225 | 310 | 69750 | ||||
October | 175 | 312 | 54600 | ||||
Total | 770 | 236375 | |||||
Average cost=236375/770=$ 306.9805 | |||||||
Cost of the ending inventory=165*306.9805=50651.78=$ 50652 | |||||||
2 | FIFO method: | ||||||
Under FIFO,Goods purchased first are sold first | |||||||
Hence,Ending inventory consist of units from latest purchase | |||||||
Cost of the ending inventory: | |||||||
$ | |||||||
From Oct purchase | 165 units at $ 312 | (165*312) | 51480 | ||||
Cost of the ending inventory=$ 51480 | |||||||
3 | LIFO method: | ||||||
Under LIFO,Goods purchased last are sold first | |||||||
Hence,Ending inventory consist of units from earlier purchase | |||||||
Cost of the ending inventory: | |||||||
$ | |||||||
From Apr purchase | 165 units at $ 305 | (165*305) | 50325 | ||||
Cost of the ending inventory=$ 50325 | |||||||
Exercise 17.1 Using the various costing methods of inventory valuation. LO 17-1 Information about Vinzant Company's...
Information about Vinzant Company’s inventory of one item follows. Compute the cost of the ending inventory under the average cost method. Compute the cost of the ending inventory under the FIFO method. Compute the cost of the ending inventory under the LIFO method. Number of Unit Units Cost 135 $ 270 Explanation Beginning inventory, January 1 Purchases: April August October Ending inventory, December 31 175 195 145 135 275 280 282 Complete this question by entering your answers in the...
Problem 17.1A Computing inventory costs under different valuation methods. LO 17-1 The following data concerns inventory and purchases at Muse Company. 95 units at $108 Inventory, January 1 Purchases: January 6 January 15 January 22 Inventory, January 31 65 units at $107 50 units at $107 40 units at $101 93 units a. Determine the cost of the ending inventory on January 31 under the average cost method. b. Determine the cost of the ending inventory on January 31 under...
Problem 17.1A Computing inventory costs under different valuation methods. LO 17-1 The following data concerns inventory and purchases at Muse Company. bok 95 units at $108 int Inventory, January 1 Purchases: January 6 January 15 January 22 Inventory, January 31 ences 65 units at $107 50 units at $107 40 units at $101 93 units a. Determine the cost of the ending inventory on January 31 under the average cost method. b. Determine the cost of the ending inventory on...
Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.
2 Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 art 1 of 2 Required: Hemming uses a perpetual Inventory system. 1. Determine the costs assigned to ending Inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending Inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. ints eBook Complete this questions by entering your answers in the below tabs. Hint Required...
Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. Units Sold at Retail Units Acquired at Cost 245 units @ $11.80 = $ 2,891 190 units @ $41.80...
1 Required Information Use the following information for the Exercises below. The following information applies to the questions displayed below] 12 points Hemming Co. reported the following current-year purchases and sales for its only product eBook Activities Units Acquired at Cost 265 units $12.60 Units Sold at Retail Date Jan. 1 Beginning inventory Jan. 18 Sales Mar.14 Purchase - $ 3,339 225 units $42.60 430 units $17.60 7,568 Hint Mar.15 Sales 37e units $42.60 July 38 Purchase Oct. 5 Sales...
Chapter 5 eBook Calculator Inventory Costing Methods VanderMeer Inc. reported the following information for the month of August: Inventory, August 1 56 units $20 Purchase: August 7 51 units $21 August 18 68 units $23 August 27 48 units $25 During August, VanderMeer sold 139 units. The company uses a periodic inventory system. Required: What is the value of ending inventory and cost of goods sold for August under the following assumptions, Assumption Cost of Goods Sold 1. Of the...
Dundas Company's inventory records for its retail division show the following at October 31: (Click the icon to view the accounting records.) At October 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific...
Problem 17.2A Computing inventory costs under different valuation methods and applying the lower of cost or net realizable value rule. LO 17-1, 17-3 The following data pertains to Efficient Market Investment software packages in the inventory of the Investment Software division of Efficient Market Investment Outlets: 210 units at $115 Inventory, January 1 Purchases: May 10 August 18 October 1 Inventory, December 31 150 units at $113 220 units at $112 210 units at $113 1(a). Determine the cost of...