Units Unit Cost Total Cost
1/1 Beginning Inventory 100 $4 $ 400
1/20 Purchase 400 $5 2,000
7/25 Purchase 300 $6 1,800
10/20 Purchase 200 $7 1,400
A physical count of inventory on December 31 revealed that there were 300 units on hand.
Answer the following independent questions and show computations supporting your answers.
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $__________.
2. Assume that the company uses the Average Cost method. The value of the ending inventory on December 31 is $__________.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________.
4. Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?
Recently Asked Questions
- I think that the answer here is The Golgi, but I am not sure; can someone please explain the correct answer to me?
- Determine a linearly independent set of vectors that spans the same subspace of V as that spanned by the original set of vectors.
- The difference between the action spectrum and the absorption spectrum of plants suggests that :