Question

Pearl Company was formed on December 1, 2016. The following information is available from Pearl's inventory records for Product BAP Units Unit Cost $6.00 January 1,2017 (beginning inventory) Purchases: 618 January 5,2017 January 25,2017 February 16, 2017 March 26, 2017 1,236 1,339 824 618 7.00 8.00 9.00 10.00 A physical inventory on March 31, 2017, shows 1,648 units on hand. Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method. PEARL COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31,2017 Units Unit Cost Total Cost Purchases January 25, 2017 Purchases February 16,2017 Purchases March 26,2017 Ending Inventory Prepare schedule to compute the ending inventory at March 31, 2017, under LIFO inventory method. PEARL COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER LIFO INVENTORY METHOD March 31, 2017 Units Unit Cost Total Cost Calculate average-cost per unit. (Round answer to 2 decimal places,e.g. 2.76.) Weighted average-cost per unit$ Compute the ending inventory at March 31, 2017, under Weighted-average inventory method. (Round answer to O decimal places, eg. 2,760.) Weighted-Average Ending Inventory at March 31, 2017 $

Answer 1

Solution:

Pearl Company
Computation of Inventory for Product
BAP under FIFO Inventory method
March 31, 2017
	Units	Unit Cost	Total Cost
Purchases January 25, 2017	206	$8	$1,648
Purchases February 16, 2017	824	$9	$7,416
Purchases March 26, 2017	618	$10	$6,180
Ending inventory	1648		$15,244

Pearl Company
Computation of Inventory for Product
BAP under LIFO Inventory method
March 31, 2017
	Units	Unit Cost	Total Cost
January 1, 2017 (Beginning)	618	$6	$3,708
Purchases January 5, 2017	1030	$7	$7,210
Ending inventory	1648		$10,918

Solution:

Computation of Total Cost Of goods available
	Units	Unit Cost	Total Cost
January 1, 2017 (Beginning)	618	$6	$3,708
Purchases January 5, 2017	1236	$7	$8,652
Purchases January 25, 2017	1339	$8	$10,712
Purchases February 16, 2017	824	$9	$7,416
Purchases March 26, 2017	618	$10	$6,180
Ending inventory	4635		$36,668

Weighted average cost per unit = $36668/4635 = $7.91 per unit

Ending Inventory (Weighted average) = 1648* $7.91 = $13,036