Question

***Determine the cost of the inventory on December 31, 20Y7, by the first-in, first-out method.

Inventory by Three Cost Flow Methods Details regarding the inventory of appliances on January 1, 20Y7, purchases invoices during the year, and the inventory count on December 31 20Y7, of Amsterdam Appliances are summarized as follows: Purchases Invoices Inventory, Inventory Count, 3rd 4 at $76 6 at 184 1st 4 at $ 64 4 at 158 3 at 65 6 at 250 10 at 246 2 at 110 4 at 170 2nd 4 at $ 70 3 at 170 15 at 689 at 70 5 at 260 16 at 267 3 at 128 4 at 175 ModelJanuary 1 December 31 A10 B158 at $176 E60 G83 134 M90 Q70 5 at 160 8 3 at 75 7 at 242 12 at 240 2 at 108 10 at 259 16 at 270 3 at 130 7 at 180 15 8 1. Determine the cost of the inventory on December 31, 20Y7, by the first-in, first-out method If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. Under FIFO, if a model is in inventory at two different costs, enter the remaining units that were purchased most recently first. First-In, First-Out Method Total Cost Unit Cost Quantity Model 64 X 4 A10 2 176 X 75 X 65 X 242 X B15 3 X 2 X E60 G83 034 M90 Q70 Total

Answer 1

First In First Out method ModelQuantity Unit cost Total cost 4 $76 $ 2 6 $ 184$1,104 8 units at the end of the year, ending inventory will be from 3rd purchase 2 $ 170 $ 304 6 units at the end of the vear, ending inventory will be from 3rd purchase 140 lbalance 2 units (6-4) from second purchase A10 70 B15 340 lbalance 2 units (8-6) from second purchase 350 5 units at the end of the vear, ending inventory will be from 3rd purchase E60 G83 U34 M90 70 9$ 259$2,331 9 units at the end of the year, ending inventory will be from 3rd purchase 15 $ 270$4,050 15 units at the end of the year, ending inventory will be from 3rd purchase $ 130$ 2 S 128S 7 $ 180$1,260 8 units at the end of the year, ending inventory will be from 3rd purchase 1 $ 175 $ 56 390 5 units at the end of the vear, ending inventory will be from 3rd purchase 256 lbalance 2 units (5-3) from second purchase Q70 175 balance 1 units (8-7) from second purchase $ 10,700 Cost of inventory on December 31, 20Y7, by FIFO method is $10,700