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    slh6582's Avatar
    slh6582 Posts: 22, Reputation: 1
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    #1

    May 13, 2007, 09:33 PM
    Inventory Costing
    Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases:
    Dec. 7: 10 units at $6
    Dec. 14: 20 units @ $12
    Dec. 21: 15 units @ $14

    Trader sells 15 units for $25 each on December 15. Eight of the sold units are from the December 7 purchase and seven are from the December 14 purchase. Trader uses a perpetual inventory system.
    Determine the costs assigned to the December 31 ending inventory when costs are assigned based on
    (a) FIFO, (b) LIFO, (c) weighted average, and (d ) specific identification.

    Can anyone tell me if my answers are correct. If not, do not give me the correct answer, but just tell me which ones I need to work on. Thanks!

    a). Ending inventory is 390
    b). Ending inventory is 330
    c). Ending inventory is 360
    d). Ending inventory is 482
    slh6582's Avatar
    slh6582 Posts: 22, Reputation: 1
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    #2

    May 14, 2007, 06:57 PM
    Quote Originally Posted by slh6582
    Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases:
    Dec. 7: 10 units at $6
    Dec. 14: 20 units @ $12
    Dec. 21: 15 units @ $14

    Trader sells 15 units for $25 each on December 15. Eight of the sold units are from the December 7 purchase and seven are from the December 14 purchase. Trader uses a perpetual inventory system.
    Determine the costs assigned to the December 31 ending inventory when costs are assigned based on
    (a) FIFO, (b) LIFO, (c) weighted average, and (d ) specific identification.

    Can anyone tell me if my answers are correct. If not, do not give me the correct answer, but just tell me which ones I need to work on. Thanks!

    a). ending inventory is 390
    b). ending inventory is 330
    c). ending inventory is 360
    d). ending inventory is 482
    Can anyone help please!! Just let me know if my answers were correct!!
    defleezy's Avatar
    defleezy Posts: 2, Reputation: 1
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    #3

    Nov 19, 2008, 08:59 PM
    Yes your answers are correct; great work!
    defleezy's Avatar
    defleezy Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Nov 19, 2008, 10:25 PM

    I am sorry, I reviewed the question again and parts a,b, & c are correct. The answer to d is off.
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