Question

Obj. 6 ✓b. $19,080 E6-14 Inventory by three methods The units of an item available for sale during the year were as follows. Jan. 1 Inventory 27 units at $400 Feb. 19 Purchase 54 units at $460 June 8 Purchase 63 units at $520 Oct. 7 Purchase 56 units at $550 There are 45 units of the item in the physical inventory at December the cost of ending inventory using (a) the first-in, first-out method, (b) the method, and the weighted average cost method. cember 31. Determine (b) the last-in, first-ca.

Answer 1

Answer

a. $ 24,750

b. $ 19,080

c. $ 22,320

Calculations:

First-in, First-out Method
	Purchases			Sold			Balance
Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-Jan							27	$      400	$   10,800
1-Feb	54	$ 460.00	$      24,840				27	$      400	$   10,800
							54	$      460	$   24,840
8-Jun	63	$ 520.00	$      32,760				27	$      400	$   10,800
							54	$      460	$   24,840
							63	$      520	$   32,760
7-Oct	56	$ 550.00	$      30,800				27	400	$   10,800
							54	460	$   24,840
							63	520	$   32,760
							56	550	$   30,800
Sale				27	$      400	$      10,800
				54	$      460	$      24,840
				63	$      520	$      32,760
				11	$      550	$         6,050	45	550	$   24,750

Last-in, First-out Method
	Purchases			Sold			Balance
Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-Jan							27	$ 400	$ 10,800
1-Feb	54	$ 460.00	$ 24,840				27	$ 400	$ 10,800
							54	$ 460	$ 24,840
8-Jun	63	$ 520.00	$ 32,760				27	$ 400	$ 10,800
							54	$ 460	$ 24,840
							63	$ 520	$ 32,760
7-Oct	56	$ 550.00	$ 30,800				27	400	$ 10,800
							54	460	$ 24,840
							63	520	$ 32,760
							56	550	$ 30,800
Sale				56	$ 550	$ 30,800
				63	$ 520	$ 32,760
				36	$ 460	$ 16,560	27	400	$ 10,800
							18	460	$    8,280
									$ 19,080

Weighted average
Date	Units	Rate	Amount
Total Purchases	200	$      496	$      99,200
Sale	155	$      496	$      76,880
Balance	45	$      496	$      22,320