Assignment A-10.1
A Metal company has the following inventory transactions during the month of March:
| March 1 Beginning Inventory | 4,000 units @ $2.00 | $8,000 |
| Week 1, purchases | 2,000 units @ $2.10 | $4,200 |
| Week 2, purchases | 2,000 units @ $2.20 | $4,400 |
| Week 3, purchases | 1,000 units @ $2.30 | $2,300 |
| Week 4, purchases | 1,000 units @ $2.40 | $2,400 |
On March 31, a count of the ending inventory was completed, and 5,500 units were on hand. By using the
periodic system, calculate the cost of goods sold and ending inventory using LIFO, FIFO and weighted-average inventory methods.
Assignment A-10.2
A wholesaler for commercial builders uses a perpetual inventory system and a FIFO cost-flow assumption.
The data concerning its inventory for the year 20X7 is as follows:
| Purchased | Sold | Balance | |
| December 31, 20X6 | 110 @ $5 = $550 | ||
| Feb. 10, 20X7 | 80 @ $6 = $480 | ||
| April 14 | 60 | ||
| May 9 | 110 @ $7 = $770 | ||
| July 14 | 120 | ||
| August 21 | 100 @ $8 = $800 | ||
| September 12 | 75 | ||
| Total | 290 $2,050 | 255 |
Calculate the ending inventory balance in units and dollars.
Assignment A-10.3
A company began business on March 15, 20X7. The following are purchases of inventory.
| March 17 | 100 units @ $10 | $1,000 |
| April 19 | 50 units @ $12 | 600 |
| May 14 | 100 units @ $13 | 1,300 |
| Total | $2,900 |
On May 25, 140 units were sold, leaving inventory of 110 units. The company's accountant was preparing a balance sheet for
June 1, at which time the replacement cost of inventory was $12 per unit.
- Suppose the company uses LIFO, without applying lower-of-cost-or-market. Compute the June 1 inventory amount.
- Suppose the company uses lower-of-LIFO-cost-or-market. Compute the June 1 inventory amount.
- Suppose the company uses FIFO, without applying lower-of-cost-or-market. Compute the June 1 inventory amount.
- Suppose the company uses lower-of-FIFO-cost-or-market. Compute the June 1 inventory amount.
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