Question

Alternative Inventory Methods

Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

	Units			Unit Cost
January 1, 2019 (beginning inventory)	3,500			$6.00
Purchases:
January 6, 2019	4,200			7.00
January 25, 2019	3,900			7.50
February 17, 2019	3,300			8.00
March 27, 2019	3,600			8.50

A physical inventory on March 31, 2019, shows 7,000 units on hand.

Required:

Prepare schedules to compute the ending inventory at March 31, 2019, under each of the following inventory methods.

1. FIFO

FRATE COMPANY
Computation of Inventory Under FIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
March 27, 2019		$	$
February 17, 2019
January 25, 2019 (portion)
March 31, 2019 inventory			$

2. LIFO

FRATE COMPANY
Computation of Inventory Under LIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2019 (portion)
March 31, 2019 inventory			$

3. Weighted average

FRATE COMPANY
Computation of Inventory Under Weighted Average Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2019
January 25, 2019
February 17, 2019
March 27, 2019
Total			$
Weighted average cost		$
March 31, 2019 inventory		$	$

Answer 1

Prepare schedules to compute the ending inventory at March 31, 2019, under each of the following inventory methods.

1. FIFO

FRATE COMPANY
Computation of Inventory Under FIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
March 27, 2019	3600	$8.50	$30600
February 17, 2019	3300	8	26400
January 25, 2019 (portion)	100	7.50	750
March 31, 2019 inventory	7000		$57750

2. LIFO

FRATE COMPANY
Computation of Inventory Under LIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory	3500	$6	$21000
January 6, 2019 (portion)	3500	7	24500
March 31, 2019 inventory	7000		$45500

3. Weighted average

FRATE COMPANY
Computation of Inventory Under Weighted Average Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory	3500	$6	$21000
January 6, 2019
January 25, 2019	4200	7	29400
February 17, 2019	3900	7.5	29250
March 27, 2019	3300	8	26400
Total	3600	8.5	$30600
Weighted average cost	18500	$7.3865	136650
March 31, 2019 inventory	7000	$7.3865	$51706