Answered: Specific Identification, FIFO, LIFO,…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

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Specific Identification, FIFO, LIFO, and Weighted-Average

Boyce Company’s beginning inventory and purchases during the fiscal year ended September 30, 20-2, are shown.

		Units	Unit Price	Total Cost
October 1, 20-1	Beginning inventory	400	$15.00		$6,000
October 18	1st purchase	300	16.50		4,950
November 25	2nd purchase	600	17.00		10,200
January 12, 20-2	3rd purchase	700	17.25		12,075
March 17	4th purchase	800	18.00		14,400
June 2	5th purchase	400	19.00		7,600
August 21	6th purchase	300	21.00		6,300
September 27	7th purchase	500	21.75		10,875
		4,000			$72,400

Use the following information for the specific identification method.

There are 900 units of inventory on hand on September 30, 20-2. Of these 900 units:

50 are from October 18, 20-1	1st purchase
300 are from January 12, 20-2	3rd purchase
100 are from March 17	4th purchase
200 are from June 2	5th purchase
50 are from August 21	6th purchase
200 are from September 27	7th purchase

Required:

Calculate the total amount to be assigned to the cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods.

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