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Question 3 Diablo Inc. markets a number of self-defense products. One if its products, the War...

Question 3

Diablo Inc. markets a number of self-defense products. One if its products, the War Scepter (WS), is especially popular with its paladin customers.

Diablo had the following purchases and sales in 2015 and 2016:

Date

Quantity

Purchase Price / Sales Price

Opening Inventory, Jan 1, 2015

300

$20

Purchase, February 15, 2015

200

60

Sale, April 28, 2015

300

230

Purchase, May 1, 2015

200

70

Sale, October 8, 2015

200

230

Purchase, December 30, 2015

200

80

Closing Inventory, Dec 31, 2015

400

?
  1. Assume that Diablo uses the LIFO cost flow assumption to account for inventory and a perpetual inventory system. What is the ending inventory cost for 2015?
  2. Assume that Diablo uses the LIFO cost flow assumption to account for inventory and a periodic inventory system. What is the ending inventory cost for 2015?
  3. Assume that Diablo uses the average cost flow assumption to account for inventory and a perpetual inventory system. What is the ending inventory cost for 2015?

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Expert Solution

ekkarill92 answered 1 year ago
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