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Accounting question?. help please. I
I've been working on this problem for 3hours but I keep getting it wrong... here's the info:
Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 60 units @ $50.20/unit Mar. 5 Purchase 205 units @ $55.20/unit Mar. 9 Sales 220 units @ $85.20/unit Mar. 18 Purchase 65 units @ $60.20/unit Mar. 25 Purchase 110 units @ $62.20/unit Mar. 29 Sales 90 units@ $95.20/unit Totals 440 units 310 units Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 3 decimal places and inventory balances to the nearest dollar amount. Omit the "$" sign in your response.) Now I need to find the information below: Ending Inventory (a) FIFO $?? (b) LIFO $?? (c) Weighted average $?? (d) Specific identification $?? The answer that I keep getting which is wrong is (a)8,046(b)17,667(c)7410.88(d)17,467 So can you also explain the steps as to how I get to the answer... what times or plus what etc. Thank You. |
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the steps to get the answer are a+b-c=d
in the case of FIFO the first things sold are ite inventory items which first were added to inventory together with their associated costs, in the case of LIFO the reverse is true, for average cost you keep recomputing the weighted average cost after each transaction. For specific identification the units are sold with the cost associated with the transaction you have to do the work we will not give you model answers but here is an example a:Mar. 1 Beginning inventory 60 units @ $50.20/unit = b:Mar. 5 Purchase 205 units @ $55.20/unit = c:Mar. 9 Sales 220 units @ $85.20/unit FIFO c:60*$50.20+160* 55.20 = LIFO c:205*$55.20+15*50.20= weighted average c:220*((60*50.20)+(205*55.20)/265)= Specific identification c:45 * 50.20 + 175* 55.20 = |
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