Information about Vinzant Company’s inventory of one item follows. Explanation Number of Units Unit Cost Beginning...

Information about Vinzant Company’s inventory of one item follows.

Explanation	Number of Units		Unit Cost
Beginning inventory, January 1		115		$	365
Purchases:
April		135			370
August		145			375
October		120			377
Ending inventory, December 31		115

Questions:

Compute the cost of the ending inventory under the average cost method.
Compute the cost of the ending inventory under the FIFO method.
Compute the cost of the ending inventory under the LIFO method.

Answer each of the 3 questions by entering your answers in the tabs below.

Compute the cost of the ending inventory under the average cost method. (Round your "average cost per unit" answer to 2 decimal places.)

Average Cost	Merchandise available for sale			Ending Inventory
Average Cost	Number of units	Unit cost	Total cost	Number of units	Average cost per unit	Total cost
Beginning inventory			$0
Purchases:
April			0
August			0
October			0
Total	0		$0			$0

Expert Solution

Please give positive ratings so I can keep answering. If you have any queries please comment. Thanks!

Explanation	Number of Units			Unit Cost
Beginning inventory, January 1		115			$	365
Purchases:
April		135				370
August		145				375
October		120				377
Ending inventory, December 31		115

Compute the cost of the ending inventory under the FIFO method.

Under FIFO goods purchased first will be sol first. So The closing inventory will consist of the stock purchased in last.
So Ending inventory, December 31 is 115 units @ $377
115*377	$	43,355.00

Compute the cost of the ending inventory under the LIFO method.
Under LIFO goods purchased last will be sold first. So The closing inventory will consist of the stock purchased in beginning.
So Ending inventory, December 31 is 115 units @ $365
115*365	$	41,975.00

Weighted Average Cost
Average Cost	Merchandise available for sale			Ending Inventory
Average Cost	Number of units (A)	Unit cost (B)	Total cost (C=A*B)	Number of units	Average cost per unit	Total cost
Beginning inventory	115	365	$41,975
Purchases:
April	135	370	$49,950
August	145	375	$54,375
October	120	377	$45,240
Total	515	$371.92	$191,540	115	$371.92	$42,771
Unit cost= Total Cost/Number of units
Unit cost= 191,540/515
Unit cost= $ 371.92
So Ending inventory, December 31 is 115 units @ $371.92
115*371.92	$	42,771.00

ekkarill92 answered 10 months ago

Given the following inventory information… Item number Unit cost Annual usage in units Current inventory in...

Given the following inventory information… Item number Unit cost Annual usage in units Current inventory in units B8867 10 100 4500 J1252 5.25 6500 120 K9667 1.22 4000 1000 L2425 12.5 54 254 M4554 5.25 6500 120 T6334 70 500 800 W9856 .75 800 20000 X2215 1.5 8000 2000 Y3214 70 1000 500 Y6339 4 3500 125 which of the following items is not classified as C items by annual dollar usage? Which is not classified as C items by...

The following information is available concerning the inventory of Carter Inc.: Units Unit Cost Beginning inventory...

The following information is available concerning the inventory of Carter Inc.: Units Unit Cost Beginning inventory 206 $10 Purchases: March 5 299 11 June 12 402 12 August 23 254 13 October 2 150 15 During the year, Carter sold 994 units. It uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for each of the following three methods: In your calculations round average unit cost to the nearest cent, and round all other...

Beginning inventory, purchases, and sales for an inventory item are as follows: Purchases Cost of Goods...

Beginning inventory, purchases, and sales for an inventory item are as follows: Purchases Cost of Goods Sold Inventory Event Unit Cost Total Cost Unit Cost Total Cost Total Cost QTY Bought Qty sold Qty Unit Cost Beginning Inventory 150 755 First Sale 120 First Purchase 400 785 Second Sale 200 Second Purchase 300 805 Sale 290 The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year A....

Beginning inventory, purchases, and sales for Item Gidget are as follows: Sept. 1 Inventory 80 units...

Beginning inventory, purchases, and sales for Item Gidget are as follows: Sept. 1 Inventory 80 units at $175 10 Sale 65 units 18 Purchase 75 units at $180 27 Sale 70 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30. a. Cost of merchandise sold on September 27 $ b. Inventory on September 30 $

Beginning inventory, purchases, and sales for Item ER27 are as follows: July 1 Inventory 42 units...

Beginning inventory, purchases, and sales for Item ER27 are as follows: July 1 Inventory 42 units @ $22 9 Sale 34 units 13 Purchase 40 units @ $24 28 Sale 16 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 28 and (b) the inventory on July 31. a. Cost of merchandise sold on July 28 $ b. Inventory on July 31 Beginning inventory, purchases, and sales...

('$) ('$) Unit. Total Balance Date Explanation Units. Cost Cost in Units Jun-01 Beginning...

('$) ('$) Unit. Total Balance Date Explanation Units. Cost Cost in Units Jun-01 Beginning inventory. 50 1.0 50 50 Jun-06 Purchase 50 1.2 60 100 Jun-10 Sales 60 40 Jun-13 Purchase 150 1.4 210 190 Jun-20 Purchase 100 1.6 160 290 Jun-25 Purchase 150 1.8 270 440 Jun-30 Sales 200 240 FIFO Periodic System COGS: Ending Inventory: Average Cost Periodic System COGS: Ending Inventory: FIFO Previous System COGS: Ending Inventory: Average Cost Previous System COGS: Ending Inventory: Show...

Coopers Company reported the following information: Units Unit Cost Units Sold Jan 1 Beginning inventory 190...

Coopers Company reported the following information: Units Unit Cost Units Sold Jan 1 Beginning inventory 190 $50 Mar 8 Sale 100 Apr 10 Purchase 320 55 Jun 20 Sale 240 Oct 10 Purchase 570 60 Nov 30 Sale 450 Total Selling price per unit during the year: $75 790 Required Complete the following table. Cost Total Periodic Perpetual Date Purchased per Unit Cost Sold FIFO Weighted Average Units $ $ Units Units $ $ Units $ $

Henry Company reported the following information for 2017: TRANSACTIONS UNITS UNIT COST Beginning Inventory – January...

Henry Company reported the following information for 2017: TRANSACTIONS UNITS UNIT COST Beginning Inventory – January 1 6,000 $ 3.00 Purchases April 10 9,000 3.50 July 20 5,000 3.80 November 24 5,000 4.00 During 2017, Henry sold 12,000 units. The company uses a periodic inventory system. REQUIRED: What is the value of ending inventory and cost of goods sold for 2017 under the following assumptions: FIFO LIFO Weighted-Average

Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1....

Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1. Purchase 15 $11 $165 Jan 10. Purchase 15 $12 $180 Total 45 1. During January, AA sold 20 units at $30 per unit. Under FIFO, how much is the Gross Profit? $365 $380 $390 $395 2. During January, AA sold 20 units at $30 per unit Under the Weighted Average Method, how much is the Gross Profit?. $365 $380 $395 $400 3. During January,...

The beginning inventory was 320 units at a cost of $10 per unit. Goods available for...

The beginning inventory was 320 units at a cost of $10 per unit. Goods available for sale during the year were 1,360 units at a total cost of $15,060. In May, 620 units were purchased at a total cost of $6,820. The only other purchase transaction occurred during October. Ending inventory was 580 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b-1. Assume the periodic inventory system is used....

Question