Question

Ivanhoe Company was formed on December 1, 2016. The following information is available from Ivanhoe’s inventory records for Product BAP.

		Units		Unit Cost
January 1, 2017 (beginning inventory)		732		$ 8.00
Purchases:
January 5, 2017		1,464		9.00
January 25, 2017		1,586		10.00
February 16, 2017		976		11.00
March 26, 2017		732		12.00

A physical inventory on March 31, 2017, shows 1,952 units on hand.

-Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.
-Prepare schedule to compute the ending inventory at March 31, 2017, under LIFO inventory method.
-Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

-Compute the ending inventory at March 31, 2017, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.)

Answer 1

	Units	Cost per unit	value
Beginning Balance	732	$    8.00	$     5,856
Purchases
5-Jan	1464	$    9.00	$   13,176
25-Jan	1586	$ 10.00	$   15,860
16-Feb	976	$ 11.00	$   10,736
26-Mar	732	$ 12.00	$     8,784
	5490		$   54,412

Requirement 1

FIFO
Total Units Available for sale		5490
Units Sold		3538
Closing Stock in Units		1952
Valuation
Ending Inventory	732	@	$     12	$    8,784
	976	@	$     11	$ 10,736
	244	@	$     10	$    2,440
Value Of Ending Inventory				$ 21,960

Requirement 2

LIFO
Total Units Avalable for sale		5490
Units Sold		3538
Closing Stock in Units		1952
Valuation
Ending Inventory	732	@	$   8	$          5,856
	1220	@	$   9	$       10,980
Value Of Ending Inventory				$       16,836
Cost of Goods sold	(54412-16836)			$       37,576

Requirement 3

Average Cost of Inventory
Units	(A)	5490
Total Cost	(B)	$   54,412.00
Average Cost	(C=B/A)	$             9.91

Requirement 4

Average method
Total Units Avalable for sale		5490
Units Sold		3538
Closing Stock in Units		1952
Valuation
Ending Inventory	1952	@	$    9.91	$ 19,344
Value Of Ending Inventory				$ 19,344
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$ 35,068