Question

Alternative Inventory Methods

Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

	Units			Unit Cost
January 1, 2016 (beginning inventory)	1,500			$9.00
Purchases:
January 6, 2016	2,200			10.00
January 25, 2016	1,900			10.50
February 17, 2016	1,300			11.00
March 27, 2016	1,600			11.50

A physical inventory on March 31, 2016 shows 3,000 units on hand.

Required:

For each method, enter your answers in chronological order.

Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods:
(For the weighted average method, round the average cost per unit to two decimal places.)
1. FIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under FIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
		$	$
March 31, 2016 inventory			$

2. LIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under LIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
		$	$
March 31, 2016 inventory			$

3. Weighted average

FRATE COMPANY
Computation of Inventory for Product Ply Under Weighted Average Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2016
January 25, 2016
February 17, 2016
March 27, 2016
Total			$
Weighted average cost		$
March 31, 2016 inventory		$	$

Answer 1

Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods:
(For the weighted average method, round the average cost per unit to two decimal places.)
1. FIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under FIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
March 27, 2016	1600	$11.50	$18400
February 17, 2016	1300	11	14300
January 25, 2016	100	10.50	1050
March 31, 2016 inventory	3000		$33750

2. LIFO

FRATE COMPANY
Computation of Inventory for Product Ply Under LIFO Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
January 1, 2016 (beginning inventory)	1500	$9	$13500
January 6, 2016	1500	10	15000
March 31, 2016 inventory	3000		$28500

3. Weighted average

FRATE COMPANY
Computation of Inventory for Product Ply Under Weighted Average Inventory Method
March 31, 2016
	Units	Unit cost	Total cost
Beginning inventory	1500	$9	$13500
January 6, 2016	2200	10	22000
January 25, 2016	1900	10.50	19950
February 17, 2016	1300	11	14300
March 27, 2016	1600	11.50	18400
Total	8500		$88150
Weighted average cost		$10.37
March 31, 2016 inventory	3000	$10.37	$31110