Question

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** Data for McLanie Company are presented in
BE6-2. Compute the cost of the ending inventory under the
average‐cost method. (Round the cost per unit to three decimal
places.)

*Explain the financial statement effect of inventory cost
flow assumptions*.

Answer #1

BE 6-2 :

Ending inventory:

(A) FIFO = $1,800

(B) LIFO = $1,200

BE 6-3:

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 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.

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.

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.)

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...

A company just starting business made the following four
inventory purchases in June:
June
1
150
units
$ 490
June
10
200
units
785
June
15
200
units
830
June
28
150
units
810
$2,915
A physical count of merchandise inventory on June 30 reveals
that there are 220 units on hand. Using the Periodic Inventory
System.
a. Using the LIFO inventory method, the value of the ending
inventory on June 30 is?
b. Using the Average Cost Inventory Method...

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
...

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