Units Unit Cost BONITA COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FI
ID: 2577031 • Letter: U
Question
Units
Unit Cost
BONITA COMPANY
COMPUTATION OF INVENTORY FOR PRODUCT
BAP UNDER FIFO INVENTORY METHOD
March 31, 2017
Units
Unit Cost
Total Cost
BONITA COMPANY
COMPUTATION OF INVENTORY FOR PRODUCT
BAP UNDER LIFO INVENTORY METHOD
March 31, 2017
Units
Unit Cost
Total Cost
Weighted-Average
Bonita Company was formed on December 1, 2016. The following information is available from Bonita’s inventory records for Product BAP.Units
Unit Cost
January 1, 2017 (beginning inventory) 720 $ 8.00 Purchases: January 5, 2017 1,440 9.00 January 25, 2017 1,560 10.00 February 16, 2017 960 11.00 March 26, 2017 720 12.00A physical inventory on March 31, 2017, shows 1,920 units on hand.
Explanation / Answer
Units available for sale :
Jan 1 720 units * $8 $5760
5 1440 units * $9 $12960
25 1560 units * $10 $15600
16 960 units * $11 $10560
26 720 units * $12 $8640
Total 5400 units $53520
Units available for sale 5400 units
Units in ending inventory 1920 units
Units sold 3480 units
FIFO:
Ending inventory :
720 units * $12 $8640
960 units * $11 $10560
240 units * $10 $2400
$21600
LIFO:
Ending inventory:
720 units * $8 $5760
1200 units * $9 $10800
$16560
Weighted average cost method:
weighted average cost per unit = $53520 / 5400 units
= $9.911
Ending inventory:
1920 units * $9.911 = $19029.12.
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