Data on the physical inventory of Timberline Company as of December 31, 2007, are presented below.

Quantity and cost data from the last purchase invoice of the year and the next-to-the-last purchase invoice are summarized as follows:

Instructions
Determine the inventory at cost and also at the lower of cost or market, using the first-in, first out method. Record the appropriate unit costs on an inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:
1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed below as anexample.

Transcribed Image Text:

Unit Market Price s 57 200 140 26 550 15 390 2 Description A90 C18 D41 E34 F17 G68 K41 Q79 R72 S60 W21 235 Inventory Quantity 35 16 24 125 18 60 375 100 1 17 235 18 700 140 Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Description Purchased Unit Quantity Cost Purchased 5 500 8 W21