Bulldog Appliances uses the periodic inventory system. Details regarding the inv

Question

Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of appliances at September 1, 2011, purchases invoices during the next 12 months, and the inventory count at August 31, 2012, are summarized as follows:

1. Determine the cost of the inventory on August 31, 2012, by the first-in, first-out method. Present data in columnar form, using the following headings:
Model Quantity Unit Cost Total Cost
If the inventory of a particular model comprises one entire purchases plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase.
2. Determine the cost of the inventory on August 31, 2012, by the last-in, first-out method, following the procedures indicated in (1).
3. Determine the cost of the inventory on August 31, 2012, by the average cost method, using the columnar headings indicated in (1).

Explanation / Answer

90 x 102) + (60 x 101) + (45 x 101) + (35 x 95) = 230 units for a total of $23,110 available for sale.
There are 88 units remaining in ending inventory.

a. average cost method
23,110 / 230 = $100.48 per unit
100.48 x 88 = $8,842.24 Ending Inventory

b. first in first out method
The most recent purchases remain in ending inventory
(35 x 95) + (53 x 101) = $8,678 Ending Inventory

c. last in first out method
The earliest purchases remain in ending inventory.
88 x 102 = $8,976

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.