Question

Skysong Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $22 per unit. None of this inventory was sold in 2019. Relevant information is as follows. 135 Ending inventory units December 31, 2019 December 31, 2020, by purchase date December 2, 2020 July 20, 2020 135 50 185 During the year 2020, the following purchases and sales were made. Purchases March 15 335 units at $26 July 20 335 units at 28 September 4 235 units at 31 December 2135 units at 33 Sales April 10 235 August 20 335 November 18 185 December 12 235 The company uses the periodic inventory method. Calculate average-cost per unit. (Round answer to 2 decimal places, e.e. 2.76.) Average-cost Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost. (Round answers to 0 decimal places, e.g. 2,760.) Specific Identification FIFO LIFO Average-Cost Ending Inventory $L Calculate price index. (Round answer to 4 decimal places, e.g. 2.7653.) Price Index Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $22 per unit.) (Round answer to O decimal places, e.g. 2,760.) Ending inventory at dollar-value LIFO

Answer 1

DATE Average Cost pas unit = Total Coat 32.000 1175 & 27.915 522 335 335 235 135 $ 26 $ 28 $3L $ 33 $4,455 Units thit Cost ) 125 2970 Purchase (Marts) $ 8,70 Purchase (July20) $ 9,380 Purchase (sept.4) $ 7,285 Pwchase beca) 1,175 unit $32,800 Ending Sorantry: Specific Iolentification Endling Inventory is made upet 135 units from bece purchase & 50 units from July, pochost. (135X33) + Isaxas) 4455 + 1400 = 5,655 - fifo fifo (122x538) (0x837+ = 136X +33) + / sex $31) 4455 +1550 & 6005 (1858$22) + (soxt26) 2970 + 1300 $ 4,270 LIFO >

PAGE NO. DATE 1 Avaerage cost = 1858 $27.915 = 85,164 Price Index over Closing Cost / Opening Cast $33/ 4 22 595

Soltar Value LT for 34003 in Ending Invandeny at base price 6005/15 Incorase Annantary [ 400.2 - (135X#223] = 1,083 Freal Value of Increase Ending Inventory 3 1033X1.5 5 1.550 - 2970+ 155o. = $ 4,520
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