Question
Bramble Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the...
Bramble Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $24 per unit. None of this inventory was sold in 2019. Relevant information is as follows.
| Ending inventory units | ||||
| December 31, 2019 | 175 | |||
| December 31, 2020, by purchase date | ||||
| December 2, 2020 | 175 | |||
| July 20, 2020 | 50 | 225 |
During the year 2020, the following purchases and sales were
made.
|
Purchases |
Sales |
|||||||
| March 15 | 375 units | at | $28 | April 10 | 275 | |||
| July 20 | 375 units | at | 30 | August 20 | 375 | |||
| September 4 | 275 units | at | 33 | November 18 | 225 | |||
| December 2 | 175 units | at | 35 | December 12 | 275 | |||
The company uses the periodic inventory method.
Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost.
Calculate price index.
Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $24 per unit.)
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