Question

the following inforomation about one of the items carried in the food inventory of the yellow dog restaurant is taken from inventory records for the month of january. as of january 31, a physical inventory shows 10 on the shelf.

1/1 opening inventory 9 units            $1.07

1/5 purchased           15 units          $ 1.20

1/12 purchased        15 units           $1.25

1/19 purchased       10 units           $1.35

1/26 purchased         6 units            $1.40

1) what is closing inventory unit?

2) determine value ($) of closing inventory for each method.

a) FIFO

b) latest purchase price method

c) weighted average price method.

d) last in, first out method.

3) calculate cost of units issued for each method.

a) FIFO

b) latest purchase price method

c) weighted average price method

d) last in, first out method

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
1. Closing inventory units			10
2. Value of ending inventory:
	Units	Rate	Total Value
FIFO	4	$       1.35	$           5.40
	6	$       1.40	$           8.40
			$         13.80
Latest Pur Price	10	$       1.40	$         14.00
Weighted Average
	9	$       1.07	$           9.63
	15	$       1.20	$         18.00
	15	$       1.25	$         18.75
	10	$       1.35	$         13.50
	6	$       1.40	$           8.40
	55		$         68.28
Average Rate		$       1.24
Value of Ending Inventory	10	$       1.24	$         12.41
LIFO	9	$       1.07	$           9.63
	1	$       1.20	$           1.20
			$         10.83
3. Cost of Units Issued
	Units	Rate	Total Value
FIFO	9	$       1.07	$           9.63
	15	$       1.20	$         18.00
	15	$       1.25	$         18.75
	6	$       1.35	$           8.10
			$         54.48
Latest Pur Price	10	$       1.40	$         14.00
Weighted Average
	9	$       1.07	$           9.63
	15	$       1.20	$         18.00
	15	$       1.25	$         18.75
	10	$       1.35	$         13.50
	6	$       1.40	$           8.40
	55		$         68.28
Average Rate		$       1.24
Value of Ending Inventory	45	$       1.24	$         55.87
LIFO	14	$       1.20	$         16.80
	15	$       1.25	$         18.75
	10	$       1.35	$         13.50
	6	$       1.40	$           8.40
			$         57.45