BE6-3 Compute ending inventory using FIFO and LIFO . In its first month of opera
ID: 341399 • Letter: B
Question
BE6-3
Compute ending inventory using FIFO and LIFO.
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Bethke uses a periodic inventory system.
BE6-4
Compute the ending inventory using average-cost.
Data for Bethke Company are presented in BE6-3. Compute the cost of the ending inventory under the average-cost method, assuming there are 360 units on hand. (Round average cost per unit to nearest cent.)
Explanation / Answer
BE6-3 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Purchases 1 300 6 1800 300 6 1800 2 400 7 2800 240 7 1680 160 7 1120 3 200 8 1600 200 8 1600 TOTAL 900 6200 540 3480 360 2720 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Purchases 1 300 6 1800 300 6 1800 2 400 7 2800 340 7 2380 60 7 420 3 200 8 1600 200 8 1600 TOTAL 900 6200 540 3980 360 2220 ENDING INVENTORY FIFO $2,720 LIFO $2,220 BE6-4 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Purchases 1 300 6 1800 2 400 7 2800 3 200 8 1600 TOTAL 900 6.89 6200 540 6.89 3721 360 6.89 2479 Ending inventory Average Method 2479
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.