Question

Exercise 8-12 Company was formed on December 1, 2016. The following information is available from Skysong's inventory records for Product BAP. UnitsUnit Cost January 1, 2017 (beginning inventory) Purchases: 750 $ 8.00 January 5, 2017 January 25, 2017 February 16, 2017 March 26, 2017 1,500 1,625 1,000 750 9.00 10.00 11.00 12.00 A physical inventory on March 31, 2017, shows 2,000 units on hand Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method. SKYSONG COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2017 Units Unit Cost Total Cost

Answer 1

	SKYSONG COMPANY
	COMPUTATION OF INVENTORY FOR PRODUCT
	BAP UNDER FIFO INVENTORY METHOD
	31-Mar-17
		Units	Unit Cost	Total Cost
	January 25,2017	250	10	2500
	16-Feb-17	1000	11	11000
	26-Mar-17	750	12	9000
	Total	2000		22500
	SKYSONG COMPANY
	COMPUTATION OF INVENTORY FOR PRODUCT
	BAP UNDER LIFO INVENTORY METHOD
	31-Mar-17
		Units	Unit Cost	Total Cost
	January 1,2017	750	8	6000
	January 5,2017	1250	9	11250
	Total	2000		17250
	Weighted Average per unit = ((750*8) + (1500*9) +(1625*10) + (1000*11) + (750*12))/(750+1500+1625+1000+750)
				9.91
	Ending Inventory at March 31, 2017		2000*9.91	19822