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Exercise 8-15 Shania Twain Company was formed on December 1, 2013. The following

ID: 2467779 • Letter: E

Question

Exercise 8-15 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 741 anuary 1, 2014 (beginning inventory) Purchases: $ 7 January 5, 2014 January 25, 2014 February 16, 2014 March 26, 2014 1,482 1,606 988 741 8 9 10 A physical inventory on March 31, 2014, shows 1,976 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.) IFO Ending Inventory at March 31, 2014 s 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.) IFO Ending Inventory at March 31, 2014

Explanation / Answer

Answer

Answer 1

FIFO inventory method

Figures in $

Particulars

Units

Unit cost

Total

Closing inventory

247

9

2223

988

10

9880

741

11

8151

1976

20254

Answer 2

LIFO inventory method

Figures in $

Particulars

Units

Unit cost

Total

Closing inventory

741

7

5187

1235

8

9880

1976

15067

Answer 3

Weighted average method

Figures in $

Particulars

Units

Unit cost

Total

Beginning Inventory

741

7

5187

Purchases

1482

8

11856

1606

9

14454

988

10

9880

741

11

8151

Weighted Average cost per unit

5558

8.91

49528

(49528/5558)

Answer 4

Weighted Average Inventory

Figures in $

Particulars

Units

Unit cost

Total

Inventory

1976

8.91

17608.371

FIFO inventory method

Figures in $

Particulars

Units

Unit cost

Total

Closing inventory

247

9

2223

988

10

9880

741

11

8151

1976

20254

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