Question

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 for Item ER27 are as follows:

January 1		Inventory	96 units @ $31
5		Sale	77 units
11		Purchase	107 units @ $33
21		Sale	90 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on January 21 and (b) the inventory on January 31.

a. Cost of merchandise sold on January 21	$
b. Inventory on January 31

Beginning inventory, purchases, and sales for Meta-B1 are as follows:

July 1		Inventory	100 units at $400
12		Sale	70 units
23		Purchase	120 units at $450
26		Sale	110 units

a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the July 23 purchase.
$per unit

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on July 26.
$

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on July 31.
$

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	5	units at $50	$250
Aug. 7	Purchase	15	units at $52	780
Dec. 11	Purchase	13	units at $53	689
		33	units	$1,719

There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar).

a.	First-in, first-out (FIFO)	$
b.	Last-in, first-out (LIFO)	$
c.	Weighted average cost	$

On the basis of the data shown below:

Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
CK3J	107	$53	$58
VZ31	214	26	24

Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9.

$

Answer 1

All amounts are shown in dollers, total amount is calculated by multiplying qty with rate ,which in the brackets

1.FIFO

Date	Purchase	Sale	Balance
july 1			42 (22) =924
july9		34 (22)= 748	8 (22) =176
july 13	40 (24) =960		8 (22) =176 40 (24) =960
july 28		8 (22) =176 8(24) =192	32(24) =768

qty shown first ,rate shown in brackets

note:qty sold on july 28 =8 (22) =176 +

8(24) =192

= 368

Balance on july 31=32(24) =768

2.LIFO

DATE	PURCHSE	SALE	BALANCE
JAN 1			96(31)=2976
JAN 5		77(31)=2387	19 (31) =2291
JAN 11	107 (33)= 3531		19 (31) =2291 107 (33)= 3531
JAN 21		90 (33) =2970	19 (31) =2291 17(33) =561

COST ON 21 JAN =90 *33=2970

BALANCE ON 31 JAN = 19 X 31=2291+17X33=561 TOTAL=2851

3.WEIGHTED AVG METHOD

DATE	PURCHASE	SALE	BALANCE
JULY 1			100(400)=40000
JULY 12		70(400)=28000	30(400)=12000
JULY23	120(450)		150(440)=66000
JULY26		110(440)=48400	40(440)=17600

In weighted avg method rate calculated by deviding total amount with qty

AVG COST AFTER JULY 23= 66000/150=440

COST OF SALE ON 26 JULY=110(440)=48400

4.

JAN 1 - 5 (50) =250

AUG 7 - 15(52) =780

DEC 13- 13(53) =689

INVENTORY BALANCE =16 UNITS

1. FIFO RATE = 13X53=689+3X52=156

TOTAL =689+156=845

2. LIFO METHOD RATE

5X50=250=11X52=572

TOTAL=250+572=822

3. WEIGHTED AVG METHOD RATE= TOTAL AMOUNT DEVIDED QTY

SO, 1719/33=52

INVENTORY VALUE AT THE END =16X52=832

5. Usually inventory valued at cost or market price whichever is lower so,

CK3J 107X53=5671

VZ31 214X24=5136