Question

Shania Twain Company was formed on December 1, 2016. The following information is available from Twain's inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 600 $ 8.00 Purchases: January 5, 2017 1,200 9.00 January 25, 2017 1,300 10.00 February 16, 2017 800 11.00 March 26, 2017 600 12.00 A physical inventory on March 31, 2017, shows 1,600 units on hand. Instructions Prepare schedules to compute the ending inventory at March 31, 2017, under each of the following inventory methods. (a) FIFO (b) LIFO. (c) Weighted-average (round unit costs to two decimal places).

Answer 1

Shania Twain Company (Product BAP)
Particulars	Units	Rate ($)	Amount ($)
Opening Inventory	600	8	4,800
Purchases:
5th Jan., 2017	1200	9	10,800
25th Jan., 2017	1300	10	13,000
16th Feb., 2017	800	11	8,800
26th Mar., 2017	600	12	7,200
Stocks Available for sold	4500	9.91	44,600
Goods Actually Sold	2900
Closing Stock (Under FIFO Method)	1600
26th Mar., 2017	600	12	7,200
16th Feb., 2017	800	11	8,800
25th Jan., 2017	200	10	2,000
Total	1,600		18,000
Closing Stock (Under LIFO Method)	1600
Opening Inventory	600	8	4,800
5th Jan., 2017	1000	9	9,000
Total	1,600		13,800
Closing Stock (Under Weighted Average Method)	1600
On Weighted Average Basis	1600	9.91	15,858
Total	1,600		15,858