Question

Exercise 8-12 (Part Level Submission)

Carla Company was formed on December 1, 2016. The following information is available from Carla’s inventory records for Product BAP. LIFO

Exercise 8-12 (Part Level Submission) Carla Company was formed on December 1, 2016. The following information is available from Carla's inventory records for Product BAP Units Unit Cost January 1, 2017 (beginning inventory) Purchases: 660 $9.00 January 5, 2017 January 25, 2017 February 16, 2017 March 26, 2017 1,320 1,430 880 660 10.00 11.00 12.00 13.00 A physical inventory on March 31, 2017, shows 1,760 units on hand

Answer 1

Answer

• Requirement ‘a’ FIFO

FIFO
	Units	Unit Cost	Total Cost
Purchase Mar 26, 2017	660	$                   13.00	$             8,580.00
Purchase Feb 16, 2017	880	$                   12.00	$          10,560.00
Purchase Jan 25, 2017	220	$                   11.00	$             2,420.00
Ending Inventory	1,760		$          21,560.00

• Requirement ‘b’ LIFO

LIFO
	Units	Unit Cost	Total Cost
Jan 1, 2017 - Beginning Inventory	660	$                     9.00	$             5,940.00
Purchase Jan 5, 2017	1,100	$                   10.00	$          11,000.00
Ending Inventory	1,760		$          16,940.00