Periodic Inventory by Three Methods Appliances uses the periodic inventory syste

Question

Periodic Inventory by Three Methods Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1 purchases invoic es during the next 12 months, and the inventory count at December 31 are summarized as follows Purchases Invoices 2nd 4 at $ 40 4 at $43 4 at $ 46 Inventory. 1st Inventory Count, December 31 Model 3rd January 1 A10 815 8 at $94 4 at 85 3 at 91 6 at 98 E60 3 at 75 3 at 65 15 at 68 9 at 70 G83 7 at 216 6 at 224 5 at 234 10 at 233 34 12 at 67 10 at 69 16 at 76 16 at 77 M90 2 at 121 2 at 123 3 at 141 3 at 143 Q70 5 at 159 4 at 169 4 at 174 7 at 179 Required: 13 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at different unit cost, use a separate line for each purchase. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first. Dymac Appliances Cost of the Inventory-FIFO Method December 31 Model Quantity Unit Cost Total Cost A10 A10 B15 B15 E60 G83 M90 M90 Q70 270 2. Determine the cost of the inventory on December 31 by the last-in, first-out method.

Explanation / Answer

Units Available for sale Units Dec 31 Units Sold 1 Dymac Appliances A10 4+4+4 = 12 5 7 Cost of the inventory-FIFO Method B15 8+4+3+6 = 21 7 14 December 31 E60 3+3+15+9 = 30 5 25 Model Quantity Unit Cost Total Cost G83 7+6+5+10 = 28 9 19 A10 4 $                      46 $           184 J34 12+10+16+16 = 54 13 41 A10 1 $                      43 $              43 M90 2+2+3+3 = 10 5 5 B15 6 $                      98 $           588 Q70 5+4+4+7 = 20 8 12 B15 1 $                      91 $              91 E60 5 $                      70 $           350 G83 9 $                   233 $        2,097 J34 13 $                      77 $        1,001 M90 3 $                   143 $           429 M90 2 $                   141 $           282 Q70 7 $                   179 $        1,253 Q70 1 $                   174 $           174 Total $        6,492 Note: under FIFO inventory purchased latest consists of inventory. 2 Dymac Appliances Cost of the inventory-LIFO Method December 31 Model Quantity Unit Cost Total Cost A10 4 $                      40 $           160 A10 1 $                      43 $              43 B15 7 $                      94 $           658 E60 3 $                      75 $           225 E60 2 $                      65 $           130 G83 7 $                   216 $        1,512 G83 2 $                   224 $           448 J34 12 $                      67 $           804 J34 1 $                      69 $              69 M90 2 $                   121 $           242 M90 2 $                   123 $           246 M90 1 $                   141 $           141 Q70 5 $                   159 $           795 Q70 3 $                   169 $           507 Total $        5,980 3 Dymac Appliances Cost of the inventory-Weighted Average Cost Method December 31 Model Quantity Unit Cost Total Cost A10 5 $                43.00 $           215 B15 7 $                93.00 $           651 E60 5 $                69.00 $           345 G83 9 $             227.00 $        2,043 J34 13 $                73.00 $           949 M90 5 $             134.00 $           670 Q70 8 $             171.00 $        1,368 Total $        6,241 WAC A10 (4*40+4*43+4*46)/12 $                43.00 B15 (8*94+4*85+3*91+6*98)/21 $                93.00 E60 (3*75+3*65+15*68+9*70)/30 $                69.00 G83 (7*216+6*224+5*234+10*233)/28 $             227.00 J34 (12*67+10*69+16*76+16*77)/54 $                73.00 M90 (2*121+2*123+3*141+3*143)/10 $             134.00 Q70 (5*159+4*169+4*174+7*179)/20 $             171.00 4 LIFO

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