Shania Twain Company was formed on December 1, 2013. The following information i
ID: 2461843 • Letter: S
Question
Shania Twain Company was formed on December 1, 2013. The following information is available from Twain’s inventory records for Product BAP.
Units
Unit Cost
January 1, 2014 (beginning inventory) 756 $ 7
Purchases:
January 5, 2014 1,512 8
January 25, 2014 1,638 9
February 16, 2014 1,008 10
March 26, 2014 756 11
A physical inventory on March 31, 2014, shows 2,016 units on hand.
Prepare schedules to compute the ending inventory at March 31, 2014, under FIFO inventory methods. (Round answer to 0 decimal places, e.g. 2,760.)
FIFO
Ending Inventory at March 31, 2014
$
Prepare schedules to compute the ending inventory at March 31, 2014, under LIFO inventory methods. (Round answer to 0 decimal places, e.g. 2,760.)
LIFO
Ending Inventory at March 31, 2014
$
Explanation / Answer
(a) Shania Twain Company
COMPUTATION OF INVENTORY AT MARCH 31, 2014
FIFO INVENTORY METHOD
March 31, 2014
Units
Unit Cost
Total Cost
March 26, 2014
756
$11.00
$ 8,316
February 16, 2014
1008
$10.00
$10,080
January 25, 2014 (portion)
252
$9.00
$ 2,268
March 31, 2014, inventory
2016
$20,664
(b) Shania Twain Company
COMPUTATION OF INVENTORY AT MARCH 31, 2014
LIFO INVENTORY METHOD
March 31, 2014
Units
Unit Cost
Total Cost
Beginning inventory
756
$7.00
$ 5,292
January 5, 2014 (portion)
1260
$8.00
$10,080
March 31, 2007, inventory
2,016
$15,372
(a) Shania Twain Company
COMPUTATION OF INVENTORY AT MARCH 31, 2014
FIFO INVENTORY METHOD
March 31, 2014
Units
Unit Cost
Total Cost
March 26, 2014
756
$11.00
$ 8,316
February 16, 2014
1008
$10.00
$10,080
January 25, 2014 (portion)
252
$9.00
$ 2,268
March 31, 2014, inventory
2016
$20,664
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.