Question

Sarah Allen Company was formed on December 1, 2019. The following information is available from Allen’s inventory records for Product BAP.

		Units		Unit Cost
January 1, 2020 (beginning inventory)		1,620		$ 8
Purchases:
January 5, 2020		3,240		9
January 25, 2020		3,510		10
February 16, 2020		2,160		11
March 26, 2020		1,620		12

A physical inventory on March 31, 2020, shows 4,320 units on hand.

a. Prepare schedule to compute the ending inventory at March 31, 2020, under FIFO inventory method.

SARAH ALLEN COMPANY                                                    COMPUTATION OF INVENTORY FOR PRODUCT                                                         BAP UNDER FIFO INVENTORY METHOD                                                                               March 31, 2020

Units

Units Cost

Total Cost

b. Prepare schedule to compute the ending inventory at March 31, 2020, under LIFO inventory method.

SARAH ALLEN COMPANY                                                    COMPUTATION OF INVENTORY FOR PRODUCT                                                         BAP UNDER FIFO INVENTORY METHOD                                                                               March 31, 2020

Units

Units Cost

total cost

Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.)   

Weighted Average-Cost per Units     $________

Compute the ending inventory at March 31, 2020, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.)

                  Weighted Average                                                   

Ending Inventory at March 31, 2020     $______________

Answer 1