Question

Please record the journal entries for the following transactions:

14 Assume Bed Bath & Beyond uses the first-in, first-out (FIFO) cost flow assumption for valuing inventories.
The beginning inventory and a sample of purchases were used to value inventories. These amounts
were: beginning inventory (3/15/17) 58,042 units @ $47.05 each; purchase 3/19/17, 6,000 units @ $48 each;
purchase 5/6/17, 11,500 units @ $49 each; purchase 6/9/17, 8,000 units @ $52 each;
purchase 8/21/17, 11,000 units @ $54 each; purchase 9/12/17, 6,000 units @ $55 each; purchase 1/5/18, 19,000
units @ $57 each. Forty-three thousand (43,000) units were on hand on March 3, 2018. Value the ending inventory
(not cost of goods sold) and adjust the total to the ending inventory value accordingly.
16 After the adjustment of inventories was made in #14, a comparison to market value (lower of cost or market)
was made. "Market" value is $2,250,000
(transactions concluded on next page)

Answer 1

Answering to Q 14
		Unit	Cost per unit	Total
3/15/2017	Opening Inventory	58,042	47.05	$ 2,730,876.10
3/19/2017	Purchases	6000	48	$    288,000.00
5/6/2017	Purchases	11500	49	$    563,500.00
6/9/2017	Purchases	8000	52	$    416,000.00
8/21/2017	Purchases	11000	54	$    594,000.00
9/12/2017	Purchases	6000	55	$    330,000.00
1/5/2018	Purchases	19000	57	$ 1,083,000.00
3/3/2018	Closing Inventory	43000	55.14	$ 2,371,000.00
Since Bed Bath & beyond uses FIFO method, closing inventory will consists of inventories purchases recently
		Unit	Cost per unit	Total
6/9/2017	Purchases	7000	52	$    364,000.00
8/21/2017	Purchases	11000	54	$    594,000.00
9/12/2017	Purchases	6000	55	$    330,000.00
1/5/2018	Purchases	19000	57	$ 1,083,000.00
				$ 2,371,000.00
Answering to Q 16
	Cost	$ 2,371,000.00
	Market Value	$ 2,250,000.00
	Closing Inventories	$ 2,250,000.00
	(Lower of Cost or Market)