Question
Alpha Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a
Alpha Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $20 per unit. None of this inventory was sold in 2019. Relevant information for fiscal 2020 is as follows:
Ending inventory units:
Total
December 31, 2019
100
December 31, 2020 by purchase date
December 2, 2020
100
July 20, 2020
30
130
During 2020, the following purchases and sales were made:
Purchases
Sales
March 15
300 units @ $24 per unit
April 10
200
July 20
300 units @ $25 per unit
August 20
300
September 4
200 units @ $28 per unit
November 18
170
December 2
100 units @ $30 per unit
December 12
200
The company uses the periodic inventory method.
Determine the ending inventory under the following (rounding to 2 decimal places):
Required
1.Specific identification
2.FIFO
3.Weighted average cost
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven M. Mintz, Roselyn E. Morris
5th edition
1259969460, 73403997, 1260480852, 978-1259969461
