Question

36. Inventory records for DAD Incorporated revealed the following: Date Apr. 1 Transaction Beginning inventory Purchase Number of Units 50 450 Unit Cost $123.00 $130.00 Apr. 4 DAD sold 490 units of inventory during the month. Ending Inventory assuming LIFO would be $_ Chapter 6 Page 6-4 37. Inventory records for MOM Company revealed the following: Date Mar. 1 Mar. 6 Mar. 16 Mar 22 Transaction Beginning inventory Purchase Purchase Purba Purchase Number of Units 400 1,000 1,000 1,000 Unit Cost $70.00 $70.20 $71.00 $71.10 MOM sold 3,300 units of inventory during the month. Ending inventory assuming FIFO would be $ 38. Inventory records for STC Company revealed the following: Date Mar. 1 Mar. 3 Mar. 23 Transaction Beginning inventory Purchase Purchase Number of Units 50 800 150 Unit Cost $25.00 $25.25 $26.00 STC sold 975 units of inventory during the month. Ending inventory assuming Weighted Average

Answer 1

* Calculation - - 36 LIFO method Last in first out as name Suggest inventory Purchased last are sold first, so the units remaining in the business at end of a period i.e. ending inventory is from the units entered earlies in the busine Total units = 50+450 =500 Inu units = 500-490 = lo units. Earliest units in business was of APR 1. 10 units X $123 = $1230 37 Ending Inventory Cost assuming LIFO is $1230 Fifo, first in first out, units bought first! are sold first, So ending inventory is from last acquired units. Total units = 400 + 1000 + 1000 + 1000 = 3400 units 3400 - 3300 - 100 units 1 most recent purchase of 100 Units X 871•10 = Company is mar 23. $ 7110 38 Endling In Cost assuming FIFO is $7110 Beginning in = 50 x 25 = 1250 Purchase = 800 X 25.25 – 20200 Purchase = 150 x 26.00 = 3900 Costof goods available for sale = 25350

Faya No. Data ots available for sale = 50 +800 + 150 = 1000 weighted aug = o Cost per unit Cost of on Cost of Units goods available for sale available for sale 25350 1000 $ 25-35 = units in End Inva 1000 - 975 = 25 End Ind avg Cost Cost = units x weighted = 25 x 25.35 - $ 633-75 pelunit