Exercise 8-12 (Part Level Submission) Units Unit Cost (a) PHAROAH COMPANY COMPUT
ID: 2608745 • Letter: E
Question
Exercise 8-12 (Part Level Submission)
Units
Unit Cost
(a)
PHAROAH COMPANY
COMPUTATION OF INVENTORY FOR PRODUCT
BAP UNDER FIFO INVENTORY METHOD
March 31, 2017
Units
Unit Cost
Total Cost
Exercise 8-12 (Part Level Submission)
Pharoah Company was formed on December 1, 2016. The following information is available from Pharoah’s inventory records for Product BAP.Units
Unit Cost
January 1, 2017 (beginning inventory) 678 $ 6.00 Purchases: January 5, 2017 1,356 7.00 January 25, 2017 1,469 8.00 February 16, 2017 904 9.00 March 26, 2017 678 10.00A physical inventory on March 31, 2017, shows 1,808 units on hand.
Explanation / Answer
Calculation of value of closing stock under FIFO
Particulars
Unit (A)
Rate (B)
Total (C=A*B)
Closing inventory units
1808
Closing stock rate under FIFO
26-Mar-17
678
$10
$6,780
16-Feb-17
1,130
$9
$10,170
Closing stock units
1,808
Total value of closing stock under FIFO
$16,950
Total value of closing stock under FIFO
$16,950
Calculation of value of closing stock under FIFO
Particulars
Unit (A)
Rate (B)
Total (C=A*B)
Closing inventory units
1808
Closing stock rate under FIFO
26-Mar-17
678
$10
$6,780
16-Feb-17
1,130
$9
$10,170
Closing stock units
1,808
Total value of closing stock under FIFO
$16,950
Total value of closing stock under FIFO
$16,950
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