Acct: Fifo and Lifo Accounting and Quantity Unit Cost Essay examples

Submitted By babydea0913
Words: 345
Pages: 2

Danielle Born
AC210
October 2, 2013
Week 1 Assignment

9–34. Periodic inventory system

1. FIFO:
Most recent purchase ........................ 350 units @ \$19.50 = \$ 6,825

2. LIFO:
Oldest costs ........................................ 250 units @ \$17.00 = \$ 4,250
Next oldest costs ................................ 100 @ 18.00 = 1,800
350 units \$ 6,050

3. Average:
Beginning inventory ........................... 250 units @ \$17.00 = \$ 4,250
Purchases ........................................... 900 @ 18.00 = 16,200
1,200 @ 19.50 = 23,400
Total ..................................................... 2,350 units \$43,850
\$43,8502,350 = \$18.66 per unit
Ending inventory valuation:
350 units \$18.66 (average unit cost) = \$6,531
9–35. Beginning inventory + Purchases – Sales = Ending inventory 600 + 600 – 800 = 400 units
1. FIFO Inventory Record—Product X Received Issued Balanced
Date Quantity Unit Cost Cost Quantity Unit Cost Cost Quantity Unit Cost Cost
9-1

600
\$150
\$900
9-6
200
\$2.00
\$400

600
200
1.50
2.00
900
400
9-12

400
\$1.50
\$600
200
200
1.50
2.00
300
400
9-13

100
1.50
1.50
100
200
1.50
2.00
150
400
9-18
250
3.00
750

100
200
250
1.50
2.00
3.00
150
400
750
9-20
150
3.50
525

100
200
250
150
1.50
2.00
3.00
3.50
150
400
750
525
9-25

100
200
1.50
2.00
150
400
250
150
3.00
3.50
750
525

Ending inventory value: 250 units @ \$3.00 = \$ 750
150 @ 3.50 = 525
400 units \$…