Question

Alternative Inventory Methods

Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

	Units			Unit Cost
January 1, 2019 (beginning inventory)	4,400			$5.00
Purchases:
January 6, 2019	5,100			6.00
January 25, 2019	4,800			6.50
February 17, 2019	4,200			7.00
March 27, 2019	4,500			7.50

A physical inventory on March 31, 2019, shows 8,800 units on hand.

Required:

Prepare schedules to compute the ending inventory at March 31, 2019, under each of the following inventory methods.

1. FIFO

FRATE COMPANY
Computation of Inventory Under FIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
March 27, 2019
February 17, 2019
January 25, 2019 (portion)
March 31, 2019 inventory

2. LIFO

FRATE COMPANY
Computation of Inventory Under LIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory
January 6, 2019 (portion)
March 31, 2019 inventory

3. Weighted average

FRATE COMPANY
Computation of Inventory Under Weighted Average Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory
January 6, 2019
January 25, 2019
February 17, 2019
March 27, 2019
Total
Weighted average cost
March 31, 2019 inventory

Answer 1

FIFO
Date	Particulars	Units	Cost per Unit	Total Cost
Jan 1	Beginning Inventory	4400	5.0	22,000
Jan 6	Purchase	5100	6	30,600
Jan 25	Purchase	4800	6.50	31,200
FEb 17	Purchase	4200	7.00	29,400
Marc 27	Purchase	4500	7.50	33,750
	Cost of Goods Available for Sale	23000		83,800
	Less: Ending Inventory (4500*7.5+4200*7+100*6.5)	8800		63,800
	Cost of Goods Sold	14200		20,000
	LIFO (Periodic)
Date	Particulars	Units	Cost per Unit	Total Cost
JAn 1	Beginning Inventory	4400	5.0	22,000
JAn 6	Purchase	5100	6	30,600
JAn 25	Purchase	4800	6.50	31,200
Feb 17	Purchase	4200	7.00	29,400
MAr 27	Purchase	4500	7.50	33,750
	Cost of Goods Available for Sale	23000		83,800
	Less: Ending Inventory (4400*5+4400*6)	8800		48,400
	Cost of Goods Sold	14200		35,400
Weighted Average Cost method
Date	Particulars	Units	Cost per Unit	Total Cost
JAn 1	Beginning Inventory	4400	5.0	22,000
Jan 6	Purchase	5100	6	30,600
Jan 25	Purchase	4800	6.50	31,200
Feb 17	Purchase	4200	7.00	29,400
Mar 27	Purchase	4500	7.50	33,750
	Cost of Goods Available for Sale	23000		83,800
	Less: Ending Inventory	8800	3.643478	32,063
	Cost of Goods Sold	14200		51,737