Splish Company was formed on December 1, 2016. The following information is avai

Question

Splish Company was formed on December 1, 2016. The following information is available from Splish’s inventory records for Product BAP.

Units

Unit Cost

A physical inventory on March 31, 2017, shows 1,888 units on hand.

A)Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.

B) Prepare schedule to compute the ending inventory at March 31, 2017, under LIFO inventory method.

C)

Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted average-cost per unit

Units

Unit Cost

January 1, 2017 (beginning inventory) 708 $ 7.00 Purchases:    January 5, 2017 1,416 8.00    January 25, 2017 1,534 9.00    February 16, 2017 944 10.00    March 26, 2017 708 11.00 > ID edugen.wileyplus.com WileyPLUS: MyWilleyPLUSI Help I Contact Us I Log Out WileyPLUS Kieso, Intermediate Accounting, 16e Intermediate Accounting (ACC 334/335) Home Read, Study& Practice Gradebook ORION Downloadable eTextbook Assignment> Open Assignment CALCULATORFULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Splish Company was formed on December 1, 2016, The following information is available from Splish's inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) Purchases: 708 $ 7.00 Exercise 8-10 January 5, 2017 January 25, 2017 February 16, 2017 March 26, 2017 1,416 1,534 944 708 8.00 9.00 10.00 11.00 Exercise 8-22 A physical inventory on March 31, 2017, shows 1,888 units on hand. Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method. SPLISH COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2017 Units Unit Cost Total Cost Version 4.24.4.5

Explanation / Answer

Answer to part a) Inventory using FIFO method (The inventory as at 31st March 2017 will be arrived as follows) Units Unit Cost Total Cost Inventory of 26/March/2017        708.00        11.00      7,788.00 Inventory of 16/Feb/2017        944.00        10.00      9,440.00 Inventory of 25/Jan/2017        236.00          9.00      2,124.00 31-Mar-17     1,888.00 19,352.00 Answer to part b) Inventory using FIFO method (The inventory as at 31st March 2017 will be arrived as follows) Units Unit Cost Total Cost Inventory of 01/01/2017        708.00          7.00      4,956.00 Inventory of 05/01/2017     1,180.00          8.00      9,440.00 31-Mar-17     1,888.00 14,396.00 Answer to part c) Inventory Value as per FIFO Method 19,352.00 Closing Number of Units     1,888.00 Cost per Unit          10.25 Inventory Value as per FIFO Method 14,396.00 Closing Number of Units     1,888.00 Cost per Unit             7.63 Answer to part d) Units Unit Cost Total Cost Jan 1, 2017 (Beginning Inventory)        708.00          7.00      4,956.00 Purchases                  -   05-Jan-17     1,416.00          8.00 11,328.00 25-Jan-17     1,534.00          9.00 13,806.00 16-Feb-17        944.00        10.00      9,440.00 26-Mar-17        708.00        11.00      7,788.00 Total Number Units     5,310.00 47,318.00 Weighted Average Cost Per Unit (Total Cost/Total Number of Units)             8.91 Units Unit Cost Total Cost Ending Inventory Value     1,888.00          8.91 16,822.08 Working Units Unit Cost Total Cost Jan 1, 2017 (Beginning Inventory)        708.00          7.00      4,956.00 Purchases                  -   05-Jan-17     1,416.00          8.00 11,328.00 25-Jan-17     1,534.00          9.00 13,806.00 16-Feb-17        944.00        10.00      9,440.00 26-Mar-17        708.00        11.00      7,788.00 Physical Inventory 31-Mar-17     1,888.00

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