Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Fifo and Lifo (https://www.askmehelpdesk.com/showthread.php?t=181726)

  • Feb 8, 2008, 08:16 AM
    tcuryl02
    Fifo and Lifo
    I need help figuring out this problem. I have been working on it for days and I cannot seem to get it. Any help would be greatly appreciated.

    4. The beginning inventory and purchases of an item for the period were as follows:

    Beginning inventory 6 units at $73 each
    First purchase 10 units at $72 each
    Second purchase 18 units at $74 each
    Third purchase 10 units at $75 each

    The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations: (a) first-in, first-out; (b) last-in, first-out; (c) average cost.

    Thank you in advance!
  • Feb 27, 2008, 07:24 AM
    jmancer
    FIFO
    BEG INV 6x73=438
    PURCHASE 10x 72 =720
    PURCHASE 13x 74 = 962
    SOLD 29
    THE 15 LEFT ARE COSTED AT 5 x74 = 370 AND 10 x75=750
    ENDING INVENTORY ARE 15 UNITS = 1120
    __________________________________________________ ________
    LIFO
    PURCHASE 10x75= 750
    PURCHASE 18x74= 1332
    PURCHASE 1x72= 72
    SOLD 29
    THE 15 LEFT ARE COSTED AT 9 x 72=648 AND 6 x73=438
    ENDING INVENTORY ARE 15 UNITS = 1086
    __________________________________________________ _________
    AVERAGE COST
    BEG INV 6x73=438
    PURCHASE 10x72=720
    PURCHASE 18x74 1332
    PURCHASE 10x75=750
    TOTAL 44 UNITS FOR A TOTAL OF $3240
    3240/44= 73.64 EA UNIT
    15 UNITS @ 73.64 = 1104.55 ENDING INVENTORY
  • Feb 27, 2008, 05:52 PM
    morgaine300
    jmancer, please do not just work out someone's homework for them. They are responsible for their own work. We are here to help them, not do it for them.

  • All times are GMT -7. The time now is 10:25 AM.