The Gidewall Corporation uses part 210 in a manufacturing process. Information a
ID: 2454358 • Letter: T
Question
The Gidewall Corporation uses part 210 in a manufacturing process. Information as to balances on hand purchases, and requisitions of part 210 is given in the following table:
Date
Quantities Received
Issued
Balance
Unit Purchase Price
January 8
--------
--------
200
$1.55
January 29
200
--------
400
$1.75
February 8
--------
80
320
------
March 20
------
160
160
------
July 10
150
-----
310
$1.75
August 18
------
110
200
------
September 6
-------
75
125
------
November 14
250
-------
375
$2.00
December 29
-----
100
275
-------
Instructions: What is the closing inentory under each of the following pricing methods? (Note: Round unit costs to three decimal places.)
1. Periodic FIFO
2. Periodic LIFO
3. Periodic average
Date
Quantities Received
Issued
Balance
Unit Purchase Price
January 8
--------
--------
200
$1.55
January 29
200
--------
400
$1.75
February 8
--------
80
320
------
March 20
------
160
160
------
July 10
150
-----
310
$1.75
August 18
------
110
200
------
September 6
-------
75
125
------
November 14
250
-------
375
$2.00
December 29
-----
100
275
-------
Explanation / Answer
Solution:
FIFO Method:
200units*$1.55 = $310
200units *$1.75 = $350
120units*$1.55 =$186
200units *$1.75 = $350
120units* $1.55 = $186
40units* $1.75 = $70
$256
160units * $1.75 =$280
150units * $1.75 =$262.5
50units * $1.75 =$87.5
150units * $1.75 =$262.5
125unit * $1.75 =$218.75
250units * $2 = $500
25units * $1.75 =$43.75
250units * $2 = $500
COGS = $878.75
Ending Inventory = $543.75
B. LIFO Method
200units*$1.55 = $310
200units *$1.75 = $350
200units*$1.55 =$310
120units *$1.75 = $210
120units* $1.75 = $210
40units* $1.55 = $62
$272
160units * $1.75 =$280
150units * $1.75 =$262.5
160units * $1.75 =$280
40units * $1.75 =$70
125unit * $1.75 =$218.75
250units * $2 = $500
125units * $1.75 =$218.75
150units * $2 = $300
COGS = $919.75
Closing inventory = $518.75
C. Weighted Average Cost Method:
200units*$1.55 = $310
200units *$1.75 = $350
$660/ 400units = $1.65
320units*$1.65 =$528
160units* $1.65 = $264
160units * $1.65 =$264
150units *$1.75 =$262.5
$526.5/310units =$1.698
200units*$1.698 =$339.6
125unit *$1.698 =$218.75
250units * $2 = $500
$718.75/375units = $1.92
275units * $1.92 = $528
COGS = $902.13
Closing Inventory = $528
Date Purchases Sales Balance Jan8 Opening Bal 200units*$1.55 = $310 Jan29 200units * $1.75 = $350200units*$1.55 = $310
200units *$1.75 = $350
Feb8 80units *$1.55 =$124120units*$1.55 =$186
200units *$1.75 = $350
Mar20120units* $1.55 = $186
40units* $1.75 = $70
$256
160units * $1.75 =$280 July10 150units * $1.75 =$262.5160units * $1.75 =$280
150units * $1.75 =$262.5
Aug18 110units * $1.75 = $192.550units * $1.75 =$87.5
150units * $1.75 =$262.5
Sep6 75units *$1.75 = $131.25 125unit * $1.75 =$218.75 Nov14 250units * $2 = $500125unit * $1.75 =$218.75
250units * $2 = $500
Dec29 100units * $1.75 = $17525units * $1.75 =$43.75
250units * $2 = $500
$1,112.5 $878.75 $543.75Related Questions
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