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Riverbed Company was formed on December 1, 2016. The following information is available from Riverbed’s inventory...

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Accounting

Riverbed Company was formed on December 1, 2016. The followinginformation is available from Riverbed’s inventory records forProduct BAP.

Units

Unit Cost

January 1, 2017 (beginning inventory)

732

$ 8.00

Purchases:

   January 5, 2017

1,464

9.00

   January 25, 2017

1,586

10.00

   February 16, 2017

976

11.00

   March 26, 2017

732

12.00


A physical inventory on March 31, 2017, shows 1,952 units onhand.

  1. Prepare schedule to compute the ending inventory at March 31,2017, under FIFO inventory method.

Units

Unit cost

Total Cost

Ending inventory

  1. Prepare schedule to compute the ending inventory at March 31,2017, under LIFO inventory method.

Units

Unit cost

Total Cost

Ending inventory

3. Calculate average-cost per unit. (Round answer to2 decimal places, e.g. 2.76.)

4. Compute the ending inventory at March 31, 2017, underWeighted-average inventory method. (Round answer to 0decimal places, e.g. 2,760.)

Answer & Explanation Solved by verified expert
3.6 Ratings (341 Votes)

Note : answer 4 may have approximation difference of $3. Let me know if you get any error in that part.

ans -1 FIFO
Unit Unit cost Total cost
   March 26, 2017 732 12 8784
   February 16, 2017 976 11 10736
   January 25, 2017 244 10 2440
Ending inventory 1952 21960
ans 2 LIFO
Unit Unit cost Total cost
January 1, 2017 (beginning inventory) 732 8 5856
   January 5, 2017 1,220 9 10980
Ending inventory 1952 16836
ans 3 Computation of average cost
Units Unit Cost total cost
January 1, 2017 (beginning inventory)          732             8         5,856
   January 5, 2017       1,464             9       13,176
   January 25, 2017       1,586           10       15,860
   February 16, 2017          976           11       10,736
   March 26, 2017          732           12         8,784
Total         5,490          54,412
Average cost = 54412/5490              9.91
ans 4 Ending inventory using weighted average cost
Ending inventry =9.91*1952          19,346

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