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A review of the accounting records of the Danzee Company yields the following information concerning inventory: Jan. 1, 500 units at $6.00 Mar. 28, purchase 600 units at $7.00 May 15, purchase 700 units at $8.00 July 6, purchase 400 units at $7.50 Oct. 19, purchase 350 units at $8.50 On December 31, a physical inventory was taken and showed 600 units on hand REQUIRED:Assuming a periodic inventory system, compute the dollar value of ending inventory using (A) FIFO; (B) LIFO; (C) weighed average. B) FIFIO - $4,850      LFI - $3,800     Average - $4,416   A) FIFIO - $4,875      LFI - $3,700       Average - $4,500

A review of the accounting records of the Danzee Company yields the following information concerning inventory: Jan. 1, 500 units at $6.00 Mar. 28, purchase 600 units at $7.00 May 15, purchase 700 units at $8.00 July 6, purchase 400 units at $7.50 Oct. 19, purchase 350 units at $8.50 On December 31, a physical inventory was taken and showed 600 units on hand REQUIRED:Assuming a periodic inventory system, compute the dollar value of ending inventory using (A) FIFO; (B) LIFO; (C) weighed average. B) FIFIO - $4,850      LFI - $3,800     Average - $4,416   A) FIFIO - $4,875      LFI - $3,700       Average - $4,500

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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A review of the accounting records of the Danzee Company yields the following information concerning inventory: Jan. 1, 500 units at $6.00 Mar. 28, purchase 600 units at $7.00 May 15, purchase 700 units at $8.00 July 6, purchase 400 units at $7.50 Oct. 19, purchase 350 units at $8.50 On December 31, a physical inventory was taken and showed 600 units on hand

REQUIRED:Assuming a periodic inventory system, compute the dollar value of ending inventory using (A) FIFO; (B) LIFO; (C) weighed average.

B) FIFIO - $4,850

     LFI - $3,800

    Average - $4,416

 

A) FIFIO - $4,875

     LFI - $3,700

      Average - $4,500

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