Question

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Bronco General Hospital purchased OR implants on the following dates and amounts. Date Units Price Total...

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?

Solutions

Expert Solution

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

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