Purchases Sales Specific Identification FIFO LIFO Average-Cost Swifty Corporatio

Question

Purchases

Sales

Specific Identification

FIFO

LIFO

Average-Cost

Swifty Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the purchase of inventory on December 10, 2016, at a cost of $21 per unit. None of this inventory was sold in 2016. Relevant information is as follows. Ending inventory units    December 31, 2016 115    December 31, 2017, by purchase date       December 2, 2017 115       July 20, 2017 50 165
During the year 2017, the following purchases and sales were made.

Purchases

Sales

March 15 315 units at $25 April 10 215 July 20 315 units at 27 August 20 315 September 4 215 units at 30 November 18 165 December 2 115 units at 32 December 12 215

The company uses the periodic inventory method.

Calculate average cost per unit. (Round answer to 2 decimal places, c.e. 2.76.) Average-cost Detenmine ending inventory under (1) specific identfication, (2) FIFO (3) LIFO, and (4) average-cost. (Round answers to o decimal places, e.g. 2,760.) Specific Identification IO LIFO Average-Cost Ending Inventory Calculate price Index. (Round answer to 4 declmal places, e.g. 2.7653.) Price Index Deterrmine ending inventory using dollar-value LIFO. Assume that the December 2, 2017, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $21 per unit.) (Round answer to 0 decimal places, e.g. 2,760.) ng inventory at dollar-value LIFO Click i fyou would like to Show Work for this question:

Explanation / Answer

purchase sales Units Cost pu Total Cost Units Opening Inventory 115 $21 $2,415 10- apr 215 15 mar 315 $25 $7,875 20 aug 315 20 july 315 $27 $8,505 18 nov 165 4 sep 215 $30 $6,450 12 dec 215 2dec 115 $32 $3,680    1,075.00 $28,925       910.00 1 Average Cost per unt = Total Cost/total no. of units =$28925/1075 $    26.91 p.u 2 Ending Inventoru Cost Using i) Specific Identification Units Cost pu Total Cost ;2 dec 115 $32 $3,680 20 july 50 $27 $1,350 165 $5,030 ii) LIFO Units Cost pu Total Cost opening 115 $21 $2,415 15. mar 50 $25 $1,250 165 $3,665 iii) FIFO Units Cost pu Total Cost 4 sep 55 $30 $1,650 2 dec 115 $32 $3,680 170 $5,330 iv) Weighted Average Cost of closing inventory = 165 units*Avg cost p.u = 165*26.91 ########

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