Following are data related to Adler Company”s beginning inventory, purchases, and sales:
|
Beginning Inventory and Purchases |
Sales |
||
|
Units |
Unit Cost |
Units |
|
|
Beginning inventory 6,250 |
@ $3.00 |
3-Feb |
5,250 |
|
March 15 5,000 |
@ 3.12 |
4-May |
4,500 |
|
May 10 8,750 |
@ 3.30 |
16-Sep |
8,000 |
|
August 12 6,250 |
@ 3.48 |
9-Oct |
7,250 |
|
November 20 3,750 |
@ 3.72 |
||
|
30,000 |
25,000 |
a. Compute the ending inventory under each of the following methods:
Specific identification (assume ending inventory is taken equally from the August 12 and November 20 purchases).
FIFO: (a) Assume use of perpetual inventory procedure.
(b) Assume use of periodic inventory procedure.
LIFO: (a) Assume use of perpetual inventory procedure.
(b) Assume use of periodic inventory procedure.
Weighted-average: (a) Assume use of perpetual inventory procedure.
(b) Assume use of periodic inventory procedure.
(Carry unit cost to four decimal places and round total cost to nearest dollar.)
b. Give the journal entries to record the individual purchases and sales (Cost of Goods Sold entry only) under the LIFO method and perpetual procedure.