Blue Corp. had 1,800 units of part T on hand April 1, 2017,
costing $8.00 each....
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Accounting
Blue Corp. had 1,800 units of part T on hand April 1, 2017,costing $8.00 each. During April, Blue made the following purchasesof part T.
Units
Unit Cost
April
4
2,800
$8.25
10
4,800
8.40
19
1,200
9.00
29
2,500
9.90
A physical count at April 30, 2017 showed 4,000 units of Part T onhand.
Using the FIFO method, what is the cost of part T inventory atApril 30, 2017? Using the LIFO method, what is the inventory cost?Using the average-cost method, what is the inventory cost?
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Answer-----------
FIFO
LIFO
Weighted Average
Ending Inventory
$ 38,070
$
32,550
$
34,617
Working
Units
Cost per unit
value
Beginning Balance
1800
$ 8.00
$
14,400
Purchases
2800
$ 8.25
$
23,100
4800
$ 8.40
$
40,320
1200
$ 9.00
$
10,800
2500
$ 9.90
$
24,750
Cost of goods available for sale
13100
$
113,370
.
Average Cost of Inventory
Units
(A)
13100
Total Cost
(B)
$
113,370
Average Cost
(C=B/A)
$
8.65
.
FIFO
Total Units Available for sale
13100
Units Sold
9100
Closing Stock in Units
4000
Valuation
Ending Inventory
2500
@
$
9.90
$
24,750
1200
@
$
9.00
$
10,800
300
@
$
8.40
$
2,520
Value Of Ending Inventory
$
38,070
.
LIFO
Total Units Available for sale
13100
Units Sold
9100
Closing Stock in Units
4000
Valuation
Ending Inventory
1800
@
$
8.00
$
14,400
2200
@
$
8.25
$
18,150
Value Of
Ending Inventory
$
32,550
.
Weighted Average method
Total Units Available for sale
13100
Units Sold
9100
Closing Stock in Units
4000
Valuation
Ending
Inventory
4000
@
$
8.6542
$
34,617
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