In: Finance
Bronco General Hospital purchased OR implants on the following dates and amounts.
Date | Units | Price | Total |
1/1 Beginning Balance | 60 | 2500 | 150000 |
3/27 Purchase | 20 | 2450 | 49000 |
4/15 Purchase | 15 | 1500 | 22500 |
6/25 Purchase | 20 | 1700 | 34000 |
7/30 Purchase | 25 | 1600 | 40000 |
9/28 Purchase | 18 | 1700 | 30600 |
11/15 Purchase | 15 | 1900 | 28500 |
12/31 Ending Balance | 75 |
A – Using FIFO what is the ending cost of inventory?
B - Using LIFO what is the ending cost of inventory?
B - Using weighted average what is the ending cost of
inventory?
a) FIFO | |||
Ending inventory | Units | Unit cost | Total |
Inventory from purchase 11/15 | 15 | 1900 | 28500 |
Inventory from purchase 9/28 | 18 | 1700 | 30600 |
Inventory from purchase 7/30 | 25 | 1600 | 40000 |
Inventory from purchase 6/25 | 17 | 1700 | 28900 |
75 | 128000 | ||
Ending inventory is $128000 | |||
b) LIFO | |||
Ending inventory | Units | Unit cost | Total |
Inventory from beginning balance | 60 | 2500 | 150000 |
Inventory from purchase 3/27 | 15 | 2450 | 36750 |
75 | 186750 | ||
Ending inventory is $186750 | |||
c)Weighted Average cost: | |||
Units available for sale= 60+20+15+20+25+18+15= 173 | |||
Average cost per unit= cost of goods available for sale/total units available | |||
=(150000+49000+22500+34000+40000+30600+28500)/173 | |||
=354600/173=2049.71 | |||
Ending inventory= 75*2049.71=$153728.25 |