Mitsuru Corporation began business operations on January 1, 2008, as a wholesaler of macadamia nuts. Its purchase and sales transactions for 2008 are listed in Exhibit 9.15. Mitsuru uses a periodic inventory system.
1. Compute 2008 ending inventory and cost of goods sold for Mitsuru Corporation using the weighted average cost flow assumption.

2. Compute 2008 ending inventory and cost of goods sold for Mitsuru using the FIFO cost flow assumption.

3. Compute 2008 ending inventory and cost of goods sold for Mitsuru using the LIFO cost flow assumption.

4, Assume that the December 31, 2008 macadamia nut replacement cost is $10.60 per pound. Compute Mitsuru’s LIFO reserve and use the beginning and ending LIFO reserve amounts to reconcile between LIFO and FIFO cost of goods sold.

Transcribed Image Text:

EXHIBIT 9.15 elluru Corporation Inventory Purchases and Sales Purchases Date Pounds Dollars/Pound Total Dollars Sales Pounds January 1 1,000 $10.00 $ 10,000 February 3 4,000 10.20 40,800 February 9 3,600 April 1 4,000 10.30 41,200 May 29 3,500 June 28 5,000 10.40 52,000 July 20 4,100 September 14 5,000 10.50 52,500 September 17 4,200 December 18 4,000 10.60 42,400 December 22 3,600 23,000 $238,900 19,000