Question

Blue Corp. had 2,100 units of part T on hand April 1, 2017, costing $ 8.00 each. During April, Blue made the following purchases of part T.

			Units		Unit Cost
April	4		2,900		$ 8.25
	10		4,600		8.40
	19		1,100		9.00
	29		2,900		9.90

A physical count at April 30, 2017 showed 4,200 units of Part T on hand.

Using the FIFO method, what is the cost of part T inventory at April 30, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 1,620.)

		FIFO		LIFO		Average Cost
Inventory Cost		$ enter inventory cost in dollars rounded to 2 decimal places		$ enter inventory cost in dollars rounded to 2 decimal places		$ enter inventory cost in dollars rounded to 2 decimal places

Crane Company has used the dollar-value LIFO method since January 1, 2017. Crane uses internal price indexes and multiple pools. At the end of calendar year 2018, the following data are available for Crane’s inventory pool A.

Inventory		At Base-Year Cost		At Current-Year Cost
January 1, 2017		$ 1,000,000		$ 1,000,000
December 31, 2017		1,290,000		1,419,000
December 31, 2018		1,340,000		1,554,400

Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory in Pool A be reported at December 31, 2018?

		December 31, 2018
Price Index		enter the price index
Dollar-value LIFO inventory		$ enter the inventory in dollars

Answer 1

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Date	Units	Unit cost	Value
April 1	2,100	$8.00	16,800
April 4	2,900	$8.25	23,925
April 10	4,600	$8.40	38,640
April 19	1,100	$9.00	9,900
April 29	2,900	$9.90	28,710
Total	13,600		117,975
Cost of goods available for sale			117,975
Unit available for sale			13,600
Average cost per unit (cost of goods available for sale * unit available for sale)			$           8.67
Average Cost
Ending inventory (4200*8.67)			36,414
FIFO
Inventory which oldest considered as inventory sale which means newest inventory considered as value of ending inventory. Ending inventory 4200 unit comprised of 2900 unit of April 29, 1100 units of April 19 and remaining 200 units of April10. (4200-2900-1100=200)
Date	Units	Unit cost	Value
April 29	2900	$             9.90	28,710
April 19	1100	$             9.00	9,900
April 10	200	$             8.40	1,680
Ending inventory			40,290
LIFO
Inventory which newest considered as inventory sale which means oldest inventory considered as value of ending inventory. Ending inventory 4200 unit comprised of 2100 unit of April 1 and remaining 2100 unit of April 4. (4200-2100=2100)
Date	Units	Unit cost	Value
April 1	2100	$             8.00	16,800
April 4	2100	$             8.25	17,325
Ending inventory			34,125

Method	FIFO	LIFO	Average Cost
Inventory Cost	$        40,290	$        34,125	$        36,414