Ex. 217
Clarke Company uses the periodic inventory method and had the following inventory information available:
Units Unit CostTotal Cost
1/1Beginning Inventory100$4$ 400
1/20Purchase400$52,000
7/25Purchase200$71,400
10/20Purchase 300$8 2,400
1,000$6,200
A physical count of inventory on December 31 revealed that there were 350 units on hand.
Instructions
Answer the following independent questions and show computations supporting your answers.
1.Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $__________.
2.Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is $__________.
a3.Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________.
Ex. 218
Kegin Company sells many products. Whamo is one of its popular items. Below is an analysis of the inventory purchases and sales of Whamo for the month of March. Kegin Company uses the periodic inventory system.
Purchases Sales
UnitsUnit CostUnitsSelling Price/Unit
3/1Beginning inventory100$40
3/3Purchase60$50
3/4Sales70$80
3/10Purchase200$55
3/16Sales80$90
3/19Sales60$90
3/25Sales70$90
3/30Purchase40$60
Instructions
(a)Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)
(b)Using the weighted average method, calculate the amount assigned to the inventory on hand on March 31. (Show computations)
a(c)Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)