Victoria Company was formed on December 1, 2013. The following information is av

Question

Victoria Company was formed on December 1, 2013. The following information is available from Jones's inventory record for Product X

January 1, 2014 (beginning invnetory) 1600 units , unit cost $18.00

Purchases:

January 5, 2014: 2600 units, unit cost $20.00

February 16, 2014: 1,000 units, unit cost $22.00

March 15, 2014: 1,800 units, unit cost $23.00

A physcial inventory on March 31, 2014, shows 2,000 units on hand

Instructions:

Prepare schedules to compute the ENDING INVENTORY at March 31, 2014, under each of the following methods. Show computations in complete form.

(A) FIFO

(B) LIFO

(C) Weighted Average

Explanation / Answer

(A) FIFO

Ending Inventory = 1800*23 + 200*22 = $45800

(B) LIFO

Ending Inventory = 1600*18 + 400*20= $36800

(C) Weighted Average

Weighted Avg Rate = (1600*18+2600*20+1000*22 + 1800*23)/7000 =20.60

Ending Inventory = 2000*20.6 = $41200

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.