Use the following information for questions 18-20. The following data represent

Question

Use the following information for questions 18-20. The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Fiskie, Inc, for an operating period. Units Total Cost Sold Beginning Inventory Sale no.1 Purchase no. 1 Sale no. 2 Purchase no. 2 Totals Unit Unit 50$31 30 40 $1,550 75040 32 25 880 $3,180 120 72 ntory procedures, the ending inventory cost is: $1,080 $1,488 C) $1,056 D) $1,200 E) None of the above 19. Assuming Fiskie, Inc., uses LIFO periodic inventory procedures, the ending inventory cost is: A) $1,056 B) $1,080 C) $1,272 D) $1,488 E) None of the above 20.Assuming Fiskie, Inc., uses weighted-average (periodic) inventory procedures, ending inventory cost is: A) $1,092 B) $1,248 C) $1,272 D) $1,080 E) None of the above

Explanation / Answer

19 In LIFO latest inventory sold first. Thus remaining inventory = 120-72=48 ….this 48 will be of beg inventory @31 ….thus cost of ending inventory = 48*31 =1488 Thus ans D would be correct unit unit cost total cost 20 beg inv 50 31 1550 purchase1 30 25 750 purchase 2 40 22 880 120 3180 Weighted avg cost = 3180/120= 26.5 ending inventory in units = 120-72 = 48 ending inventory in amount = unit* avg cost                                                            = 48* 26.5 = 1272 Thus ans C would be correct

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