Question

Lower-of-Cost-or-Market Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Total Cost Jan. 1 10 Unit Price $18 22 $180 Mar. 5 10 220 Beginning inventory 1st purchase 2nd purchase 3rd purchase Sept. 9 10 25 250 Dec. 8 10 30 300 40 $950 There are 10 units of inventory on hand on December 31. For the weighted average method, round calculations to two decimal places. If required, round your final answers to the nearest cent. 1. Calculate the total amount to be assigned to the ending Inventory under each of the following periodic inventory methods: a. FIFO b. Weighted average 2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: A. FIFO lower-of-cost-or-market Check My Work 5 more Check My Work uses remaining < Previous Next All work saved. Email instructor Save and Exit Submit Assignment for Grading 22 tv 09 N 0 Aa

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Answer 1

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B E C D 10 units 1 2. 3 A Closing stock 1.a. Under FIFO method The units first purchased are sold first. As the ending has 10 units that means they belong to the last purchase Cost of last purchase Cost of inventory 4 5 30 per unit 300 6 7 8 9 10 1.b. Weighted-average method 950 11 Total cost Total units Average cost 40 12 23.75 13 14 Cost of inventory 237.5 15 16 2. Market price Total market value of inventory 26 per unit 260 17 18 19 2.a. 260 FIFO lower of cost or market 2.b. Weighted average lower of cost or market 20 237.5 21 22 Debit Credit 23 3.a. Account title Cost of goods sold Merchandise inventory 40 24 40 25 26 3.b. No entry 27 Sheet201 Sheet202 Sheet203 Stats Ready

For calculation ref:

А B с D 1 10 units 2 3 Closing stock 1.a. Under FIFO method The units first purchased are sold first. As the ending has 10 units that means they belong to the last purchase Cost of last purchase Cost of inventory 4 5 30 per unit 6 =C5*C1 7 8 9 1.b. Weighted average method 950 10 11 Total cost Total units Average cost 40 =C10/C11 12 13 14 Cost of inventory =C12*C1 15 16 2. 26 per unit Market price Total market value of inventory 17 =C16*C1 18 19 2.a. FIFO lower of cost or market 2.b. Weighted average lower of cost or market =MIN(C17,C6) =MIN(C17, C14) 20 21 22 Credit 3.a. Account title Cost of goods sold Merchandise inventory 23 Debit =C6-C19 24 =C23 25 26 3.b. No entry לל Sheet201 Sheet202 Sheet203 Stats KI Ready