A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units.
Units Unit Cost Beginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34
Required:
Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units.
| Units | Unit Cost | |||
| Beginning inventory on January 1 | 320 | $ | 3.00 | |
| Purchase on January 9 | 80 | 3.20 | ||
| Purchase on January 25 | 100 | 3.34 | ||
Required:
Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Related questions
Perpetual: Inventory costing with FIFO
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 360 units. Ending inventory at January 31 totals 130units.
Units | Unit Cost | |||
Beginning inventory on January 1 | 320 | $ | 3.10 | |
Purchase on January 9 | 70 | 3.30 | ||
Purchase on January 25 | 100 | 3.40 | ||
Required:
Assume the perpetual inventory system is used and then determinethe costs assigned to ending inventory when costs are assignedbased on the FIFO method.
A company reports the following beginning inventory and twopurchases for the month of January. On January 26, the companysells 320 units. Ending inventory at January 31 totals 140units.
Units | Unit Cost | |||
Beginning inventory on January 1 | 290 | $ | 2.70 | |
Purchase on January 9 | 70 | 2.90 | ||
Purchase on January 25 | 100 | 3.04 | ||
Required:
Assume the perpetual inventory system is used. Determine the costsassigned to ending inventory when costs are assigned based onLIFO.
Use the following information for the Exercisesbelow.
[The following information applies to the questionsdisplayed below.]
Laker Company reported the following January purchases and salesdata for its only product.
Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||||||||
Jan. | 1 | Beginning inventory | 140 | units | @ | $ | 6.00 | = | $ | 840 | |||||||
Jan. | 10 | Sales | 100 | units | @ | $ | 15 | ||||||||||
Jan. | 20 | Purchase | 60 | units | @ | $ | 5.00 | = | 300 | ||||||||
Jan. | 25 | Sales | 80 | units | @ | $ | 15 | ||||||||||
Jan. | 30 | Purchase | 180 | units | @ | $ | 4.50 | = | 810 | ||||||||
Totals | 380 | units | $ | 1,950 | 180 | units | |||||||||||
The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 200 units, where 180are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory.
Exercise 6-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the costassigned to ending inventory and cost of goods sold using specificidentification.
2. Determine the cost assigned to ending inventoryand to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventoryand to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventoryand to cost of goods sold using LIFO.
Required 3
Required 4
Complete the table to determine the cost assigned to endinginventory and cost of goods sold using specific identification.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)
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Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.
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Hemming Co. reported the following current-year purchases and sales for its only product.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 230 | units | @ $11.20 | = | $ | 2,576 | ||||||||
| Jan. | 10 | Sales | 160 | units | @ $41.20 | |||||||||||
| Mar. | 14 | Purchase | 350 | units | @ $16.20 | = | 5,670 | |||||||||
| Mar. | 15 | Sales | 320 | units | @ $41.20 | |||||||||||
| July | 30 | Purchase | 430 | units | @ $21.20 | = | 9,116 | |||||||||
| Oct. | 5 | Sales | 400 | units | @ $41.20 | |||||||||||
| Oct. | 26 | Purchase | 130 | units | @ $26.20 | = | 3,406 | |||||||||
| Totals | 1,140 | units | $ | 20,768 | 880 | units | ||||||||||
Exercise 5-9A Periodic: Inventory costing system LO P3
Required:
Hemming uses a periodic inventory system.
(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
