Question

SIMULATION 3

Chapter 8

Develop a response in either Word or Excel and follow the instructions outlined in the Assignments Menu for submission.

The following information is available from Jansen's inventory records for Product X:

	Units	Unit Cost
January 1, 2012 ( Beg. Inventory.)	800	$9.00
Purchases:
January 5, 2012	1,300	$10.00
January 25, 2012	1,200	$10.50
February 16, 2012	500	$11.00
March 26, 2012	900	$11.50

         A physical inventory on March 31, 2012 shows 1,600 units on hand

         REQUIRED:

         Compute the ending inventory (assuming periodic system) at March 31, 2012, under each of the following inventory methods:

(a) FIFO

(b)   LIFO

Weighted Average

    B. Aber Company manufactures one product. On December 31, 2011, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $270,000. Inventory data are as follows:

                                         Inventory at                         Price index

            Year                year-end prices                 (base year 2011)

            2012                      $378,000                                  1.05

            2013                         552,000                                  1.15

            2014                         575,000                                  1.25

      REQUIRED:

         Compute the inventory at December 31, 2012, 2013, and 2014, using the dollar-value LIFO method for each year.

Answer 1