Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales for Item PK95 are as follows:
August 1 | Inventory | 76 units @ $23 | |
9 | Sale | 62 units | |
13 | Purchase | 87 units @ $26 | |
28 | Sale | 20 units |
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on August 28 and (b) the inventory on August 31.
a. Cost of merchandise sold on August 28 | $ |
b. Inventory on August 31 | $ |
2.)
Lower-of-Cost-or-Market Method
On the basis of the data shown below:
Item | Inventory Quantity |
Cost per Unit |
Market Value per Unit (Net Realizable Value) |
MX62 | 64 | $26 | $28 |
O5T4 | 127 | 14 | 9 |
Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9.
$
3.)
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
The units of an item available for sale during the year were as follows:
Jan. 1 | Inventory | 13 | units at $36 | $468 |
Aug. 7 | Purchase | 20 | units at $37 | 740 |
Dec. 11 | Purchase | 15 | units at $39 | 585 |
48 | units | $1,793 |
There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar).
a. | First-in, first-out (FIFO) | $ |
b. | Last-in, first-out (LIFO) | $ |
c. | Weighted average cost | $ |
Solution:
Date | Purchases | Sale | Balance | ||||||
Quantity | Price per Unit | Value | Quantity | Price per Unit | Value | Quantity | Price per Unit | Value | |
01-Aug | 76 | 23 | 1748 | ||||||
09-Aug | 62 | 23 | 1426 | 14 | 23 | 322 | |||
13-Aug | 87 | 26 | 2262 | 14 | 23 | 322 | |||
87 | 26 | 2262 | |||||||
28-Aug | 14 | 23 | 322 | ||||||
6 | 26 | 156 | 81 | 26 | 2106 | ||||
Total | 87 | 2262 | 82 | 478 | 81 | 26 | 2106 |
Cost of Goods Sold = $478 (82 units)
Inventory 31 Aug - $ 2106 (81 units)
Kindly post multiple questions as seperate posts. The first one is solved for you.
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