Question

Page Layout Formulas Draw Data Review View Developer ome Insert insart Calibri (Body) AA Wrap Text General 11 Delete A BIU Conditional Format Formatting as Table Styles Cel Sort & Fiter Paste S % CMerge&Center Format X 17 A C P E M H Exercise ikettle Company made the following purchas of Product Ain its first year of cpereions Unit Unit Cost January 2 March 31 July 5 November 1 1,400h 7.40 1,200h 7.00 2,400 1800 760 8.00 The ending inventory that year consisted of 2,400 units Kettleusesperiedie inventery precedure 1 Compute the cost of the endrg inventory uning each of the folowing methods: (1) FIFO, (2) LIFO, and (3) weighted-average. Wegted Average FIFO LIFO $ 14,400 00 5 10,360.00 1800 7.40 8.00h 1400 2400h 0 2 This one will bereally tricky if you don't natice the key words in the instractions Endingiventory It ise't asking fo COGS For FFO, tis wanding us to determine the vaue of ENDING inventory, so it asumes that wehave already sold someofthe fnst inventory If welenow thit we hve2400itslenvecn thadtisthe last units we purchased So start there and we take the last 1800S6.00per, and then weneed another 60057.60 ger R7 Ripit for LIFO Finally, to ind the weighted one, leok t the tr inetingut for you Take 510.360 in divide y 14dos fed thewetet arage of S7 40

Answer 1

Calculation Kettle Company Periodic Inventory System FIFO LIFO Weighted Average Quantity @ Cost per unit = Total cost Quantity @ Cost per unit = Total cost Quantity @ Cost per unit = Total cost 1,800 @ $ 8.00 = $ 14,400 1,400 @ $ 7.40 = $ 10,360 1,400 @ $ 7.40 = $ 10,360 600 @ $ 7.60 = $ 4,560 1,000 @ $ 7.00 = $ 7,000 1,200 @ $ 7.00 = $ 8,400 2,400 $ 18,960 2,400 $ 17,360 2,400 @ $ 7.60 = $ 18,240 1,800 @ $ 8.00 = $ 14,400 6,800 $ 7.56 $ 51,400 2,400 $ 7.56 $ 18,141 -$51,400/6,800 units =$7.56 =2,400 units * $7.56=$18,141

Exercise G
Custer Company
Date	Account	Post Ref	Debit	Credit		Calculation
1	Inventory		7,200			=20*360
	Accounts Payable			7,200
2	Accounts Receivable		3,456			=6*576
	Sales			3,456
	Cost of goods sold		2,016			=6*336
	Inventory			2,016
3	Loss from Inventory Shortage		2,640
	Inventory			2,640