Question

In its fi rst month of operations, Bethke Company made three
purchases of merchandise

in the following sequence: (1) 300 units at $6, (2) 400 units
at $7, and (3) 200 units at $8.

Assuming there are 360 units on hand, compute the cost of the
ending inventory under the

(a) FIFO method and (b) LIFO method. Bethke uses a periodic
inventory system.

Answer #1

**Correct answers are:**

**(a) $2,720**

**(b) $2,220**

**Explanation:**

**(a) FIFO method:**

Under the FIFO method, the earliest goods purchased are the first ones removed from the inventory account. Hence 360 units in closing Inventory will compromise 200 units purchased at $8 per unit and 160 units purchased at $7 per unit.

Ending inventory = 360 units

Cost of ending Inventory:

= 200 units at $8 + 160 units at $7

= (200 * $8) + (160 * $7)

= 1,600 + 1,120

**= $2,720**

**(b) LIFO method**

Under LIFO, the cost of the most recent products purchased/produced are the first to be expensed. Hence 360 units in closing Inventory will compromise 300 units purchased at $6 per unit and 60 units purchased at $7 per unit.

**Cost of ending Inventory:**

= 300 units at $6 + 60 units at $7

= (300 * $6) + (60 * $7)

= 1,800 + 420

= **$2,220**

In its first month of operations, Bethke Company made three
purchases of merchandise in the following sequence: (1) 155 units
at $6, (2) 510 units at $7, and (3) 100 units at $8.
Assuming there are 360 units on hand, compute the cost of the
ending inventory under the FIFO method and LIFO method. Bethke uses
a periodic inventory system.
FIFO
LIFO
Cost of the ending inventory
$
$

In its first month of operations, Concord Company made three
purchases of merchandise in the following sequence: (1) 350 units
at $7, (2) 410 units at $8, and (3) 240 units at $9.
Assuming there are 360 units on hand, compute the cost of the
ending inventory under the FIFO method and LIFO method. Concord
uses a periodic inventory system.
Cost of the ending inventory: FIFO $

In its first month of operations, Swifty Company made three
purchases of merchandise in the following sequence: (1) 310 units
at $7, (2) 470 units at $8, and (3) 230 units at $9. Assuming there
are 360 units on hand, compute the cost of the ending inventory
under the FIFO method and LIFO method. Swifty uses a periodic
inventory system.

In its first month of operations, Oriole Company made three
purchases of merchandise in the following sequence: (1) 306 units
at NT$171, (2) 418 units at NT$181, and (3) 217 units at NT$200.
Oriole uses a periodic inventory system.
A) Assuming there are 467 units on hand, compute the cost of the
ending inventory under the FIFO method.
B) Assuming there are 467 units on hand, compute the cost of the
ending inventory under the average-cost method.

BE6-2
In its first month of operations, McLanie Company made three
purchases of merchandise in the following sequence: (1) 300 units
at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there
are 200 units on hand at the end of the period, compute the cost of
the ending inventory under (a) the FIFO method and (b) the LIFO
method. McLanie uses a periodic inventory system.
Compute the ending inventory using average‐cost.
(LO 2), AP
BE6-3...

In its first month of operations, Bramble Corp. made three
purchases of merchandise in the following sequence:
(1) 240 units at $ 4, (2) 340 units at $ 6,
and (3) 440 units at $ 7. Assuming there
are 140 units on hand at the end of the period, compute
the cost of the ending inventory under (a) the FIFO method and (b)
the LIFO method. Bramble Corp. uses a periodic inventory
system.

In its first month of operations, Coronado Industries made three
purchases of merchandise in the following sequence: (1) 260 units
at $8, (2) 360 units at $10, and (3) 460 units at $11. Assuming
there are 160 units on hand at the end of the period.
Compute the cost of the ending inventory under the average-cost
method. (Round answer to 0 decimal places, e.g.
5,275.)

The following information relates to questions 22-25:
A company made the following merchandise purchases and sales
during the month of July:
Assume that there was no beginning inventory.
July 4 Purchased 100 units at $20 each
July 7 Sold 60 units
July 15 Purchased 200 units at $22 each
July 22 Purchased 300 units at $25 each
July 28 Sold 400 units
22. If the company uses the FIFO, periodic inventory method,
ending inventory would be:
A. $2,000
...

In its first month of operations, Kingbird, Inc. made three
purchases of merchandise in the following sequence: (1) 155 units
at $5, (2) 520 units at $6, and (3) 140 units at $7.
New attempt is in progress. Some of the new entries may impact
the last attempt grading.Your answer is incorrect.
Calculate the weighted-average unit cost. (Round
answer to 2 decimal places, e.g. 15.25.)
Weighted-average unit cost
$enter the Average unit cost in dollars rounded to 2 decimal
places...

Given below is the summary of the beginning inventory and
purchases of merchandise made during the month for a company.
Beginning Inventory 400 units @ $8.20 = $3,280
May 3 Purchase 1,100 units @ $8.50 = $9,350
May 20 Purchase 300 units @ $8.60 = $2,580
Total 1,800 $15,210
Assume that a physical count of the inventory on May 31
indicated that 600 units were left in ending inventory at the end
of the period. Use the periodic inventory system....

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