10_17 Solution - 400 doses were consumed after that date....

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PROBLEM 10-17 SOLUTION (LIFO/FIFO) Units Price Consumption in Units Balance Left in Units FIFO LIFO FIFO LIFO Beginning bal. 1,000 $17 1,000 400 0 600 Purchase Jan. 2 300 $21 200 300 100 0 Purchase July 1 500 $23 500 500 0 FIFO LIFO Expense Expense $17,000 $6,800 $0 $10,200 $4,200 $6,300 $2,100 $0 $11,500 $11,500 $0 $21,200 $24,600 $13,600 $10,200 Note: Under LIFO 500 doses purchased on July 1 are assumed to have been used, even though only
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Unformatted text preview: 400 doses were consumed after that date. This seems counter-intuitive. The key is that LIFO is a cost flow assumption used only to calculate inventory-related expense and ending inventory balances. It does not identify the specific inventory units that were actually consumed. FIFO Inventory Value LIFO Inventory Value...
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