Sawyer Company was formed on December 1, 2014. The following information is avai

Question

Sawyer Company was formed on December 1, 2014. The following information is available from Sawyer’s inventory records for Product BAP. Units                                     Unit Cost January 1, 2015 (beginning inventory)                                    600                                         $8.00 Purchases: January 5, 2015                                                                 1,100                                       9.00 January 25, 2015                                                               1,300                                     10.00 February 16, 2015                                                               800                                     11.00 March 26, 2015                                                      600                                     12.00 A physical inventory on March 31, 2015, shows 1,500 units on hand. Instructions Prepare schedules to compute the ending inventory at March 31, 2015, under each of the following inventory methods. (a) FIFO. (b) LIFO. (c) Weighted average.

Explanation / Answer

Sawyer Company All Amounts in $ Ending Inventory, Method Wise Under FIFO Date Particulars Qty Rate per Value $ unit 01/01/2015 Opening Inventory 600 8 4800 05/01/2015 Purchases 1100 9 9900 25/01/2015 Purchases 1300 10 13000 16/02/2015 Purchases 800 11 8800 26/03/2015 Purchases 600 12 7200 31/03/2015 Cost of Goods Sold -600 8 -4800 Cost of Goods Sold -1100 9 -9900 Cost of Goods Sold -1200 10 -12000 31/03/2015 Closing Inventory 100 10 1000 Closing Inventory 800 11 8800 Closing Inventory 600 12 7200 17000 Under LIFO Date Particulars Qty Rate per Value $ unit 01/01/2015 Opening Inventory 600 8 4800 05/01/2015 Purchases 1100 9 9900 25/01/2015 Purchases 1300 10 13000 16/02/2015 Purchases 800 11 8800 26/03/2015 Purchases 600 12 7200 31/03/2015 Cost of Goods Sold -600 12 -7200 Cost of Goods Sold -800 11 -8800 Cost of Goods Sold -1300 10 -13000 Cost of Goods Sold -200 9 -1800 31/03/2015 Closing Inventory 900 9 8100 Closing Inventory 600 8 4800 12900 Under Weighted Average Date Particulars Qty Rate per Value $ unit 01/01/2015 Opening Inventory 600 8 4800 05/01/2015 Purchases 1100 9 9900 25/01/2015 Purchases 1300 10 13000 16/02/2015 Purchases 800 11 8800 26/03/2015 Purchases 600 12 7200 4400 9.93182 43700 31/03/2015 Cost of Goods Sold -2900 9.93182 -28802 31/03/2015 Closing Inventory 1500 9.93182 14897.7

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