Question

Riverbed Company was formed on December 1, 2016. The following information is available from Riverbed’s inventory records for Product BAP.

		Units		Unit Cost
January 1, 2017 (beginning inventory)		732		$ 8.00
Purchases:
January 5, 2017		1,464		9.00
January 25, 2017		1,586		10.00
February 16, 2017		976		11.00
March 26, 2017		732		12.00

A physical inventory on March 31, 2017, shows 1,952 units on hand.

1. Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.

	Units	Unit cost	Total Cost
Ending inventory

2. Prepare schedule to compute the ending inventory at March 31, 2017, under LIFO inventory method.

	Units	Unit cost	Total Cost
Ending inventory

3. Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

4. Compute the ending inventory at March 31, 2017, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.)

Answer 1

Note : answer 4 may have approximation difference of $3. Let me know if you get any error in that part.

ans -1		FIFO
			Unit	Unit cost	Total cost
		March 26, 2017	732	12	8784
		February 16, 2017	976	11	10736
		January 25, 2017	244	10	2440
		Ending inventory	1952		21960
ans 2		LIFO
			Unit	Unit cost	Total cost
		January 1, 2017 (beginning inventory)	732	8	5856
		January 5, 2017	1,220	9	10980
		Ending inventory	1952		16836
ans 3		Computation of average cost
			Units	Unit Cost	total cost
		January 1, 2017 (beginning inventory)	732	8	5,856
		January 5, 2017	1,464	9	13,176
		January 25, 2017	1,586	10	15,860
		February 16, 2017	976	11	10,736
		March 26, 2017	732	12	8,784
		Total	5,490		54,412
		Average cost = 54412/5490			9.91
ans 4		Ending inventory using weighted average cost
		Ending inventry =9.91*1952			19,346