Question

* Question 6 Bramble Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end: Terms Units Received Unit Invoice Cost $20 Net 30 120 Invoice Date Number Jan. 1 balance 1510624 Mar. 15 11437 June 20 21332 Cross Invoice Amount $2,400 1,400 1,280 Net 30 1/5, net 30 1/10, net 110 1,650 Sept. 27644 1/10, net 1,200 30 Nov. 24 31269 1/10, net 30 1,012 Totals 572 $9.942 A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Bramble Limited uses a periodic inventory system and records purchases at their invoice price less discounts. During 2020, the average sales price per basketball was $22.25. Ex Your answer is incorrect. Try again. Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer to 2 decimal places, e.g. 52.75.) Ending Inventory s Your answer is incorrect. Try again. Calculate the December 31, 2020 inventory using the weighted average cost formule. (Rour cost per unit and the final answer to 2 decimal places, e.. 52.75 1563.20 Ending Inventory 3

Answer 1

1. Calculations of inventory value as on December 31st 2020 using FIFO method:
Since brambe limited uses a periodic inventory system,physical inventory
will be the ending inventory.
So, the ending inventory will be 100 basketballs(physical inventory)
As per FIFO methods, it is assumed that ending inventory is related to
the recent purchases.
The recent purchases are:
Date	Invoice number	discount terms	Units(a)	Cost per unit	Cost per unit after discount (b)	Value (a*b)
Nov-24	31269	1/10,net 30	92	11	10.89	1001.88
Sep-24	27644	1/10,net 30	8	12	11.88	95.04
		Ending inventory	100			1096.92
So the inventory value as on December 31st 2020 will be 1096.92.
Note: As specified in the question it as been assumed that,Bramble limited records purchases at their invoice
price less discounts.

2. Calculations of inventory value as on December 31st 2020 using Weighted average method:
Date	Invoice number	Receipts				Balance
		Qty	rate	Discounted rate	amount$	Qty	rate	amount$
Jan-01	Opening balance	120	20	20	2400	120	20	2400
Jan-15	10624	70	20	20	1400	190	20	3800
Mar-15	11437	80	16	15.84	1267.2	270	18.76741	5067.2
Jun-20	21332	110	15	14.85	1633.5	380	17.63342	6700.7
Sep-12	27644	100	12	11.88	1188	480	16.43479	7888.7
Nov-24	31269	92	11	10.89	1001.88	572	15.54297	8890.58
As per Weighted average method:
Ending average rate:15.54297
As per Periodic inventory system:
closing physical inventory:100
So the inventory value as on December 31st 2020 will be $1554.30(100*15.54297).
Note: As specified in the question it as been assumed that,Bramble limited records purchases at their invoice
price less discounts.