1.
Swifty Corporation uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units |
Per unit price |
Total |
||||
---|---|---|---|---|---|---|
Balance, 1/1/2017 |
230 | $ 4.00 | $ 920 | |||
Purchase, 1/15/2017 |
110 | .. 4.00 | 440 | |||
Purchase, 1/28/2017 |
110 | .. 4.20 | 462 |
An end of the month (1/31/2017) inventory showed that 180 units
were on hand. How many units did the company sell during January
2017?
2.Oriole Company just began business and made the following four inventory purchases in June:
June 1 | 220 units | $ 1574 | ||
June 10 | 270 units | 2160 | ||
June 15 | 270 units | 2322 | ||
June 28 | 220 units | 1980 | ||
$ 8036 |
A physical count of merchandise inventory on June 30 reveals that
there are 280 units on hand. Using the average cost method, the
amount allocated to the ending inventory (rounded to whole dollar)
on June 30 is
3.
Blue Spruce Corp. just began business and made the following four inventory purchases in June:
June 1 | 110 units | $ 715 | ||
June 10 | 160 units | 1136 | ||
June 15 | 160 units | 1232 | ||
June 28 | 110 units | 891 | ||
$ 3974 |
A physical count of merchandise inventory on June 30 reveals that
there are 170 units on hand. Using the LIFO inventory method, the
value of the ending inventory (rounded to whole dollar) on June 30
is
1) Units sold = Opening + purchased - closing stock
= 230 + (110+110) - 180 = 270 Units sold
2) Average rate of inventory = Total cost of inventory / Total units
= 8030 / (220+270+270+220)
= 8.2
Value of closing inventory = Closing inventory units * avg rate
= 280*8.2 = 2296
3) In LIFO method last purchased will be sold first hence starting inventory will be in stock .
So Out of 170 units , 110 will be from opening stock while 60 will be from purchase made on june 10
Rate of june 10 inventory = Cost / units = 1136/160 = 7.1
Cost of closing inventory
Opening stock = 715
10 june (60*7.1) = 426
Total = 1141
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