Question
Alternative Inventory Methods Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory
Alternative Inventory Methods
Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:
Units | Unit Cost | |||
---|---|---|---|---|
January 1, 2016 (beginning inventory) | 2,900 | $5.00 | ||
Purchases: | ||||
January 6, 2016 | 3,600 | 6.00 | ||
January 25, 2016 | 3,300 | 6.50 | ||
February 17, 2016 | 2,700 | 7.00 | ||
March 27, 2016 | 3,000 | 7.50 |
A physical inventory on March 31, 2016 shows 5,800 units on hand.
Required:
For each method, enter your answers in chronological order.
Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods: (For the weighted average method, round the average cost per unit to two decimal places.) 1. FIFO
FRATE COMPANY | |||
Computation of Inventory for Product Ply Under FIFO Inventory Method | |||
March 31, 2016 | |||
Units | Unit cost | Total cost | |
$ | $ | ||
March 31, 2016 inventory | $ |
2. LIFO
FRATE COMPANY | |||
Computation of Inventory for Product Ply Under LIFO Inventory Method | |||
March 31, 2016 | |||
Units | Unit cost | Total cost | |
$ | $ | ||
March 31, 2016 inventory | $ |
3. Weighted average
FRATE COMPANY | |||
Computation of Inventory for Product Ply Under Weighted Average Inventory Method | |||
March 31, 2016 | |||
Units | Unit cost | Total cost | |
Beginning inventory | $ | $ | |
January 6, 2016 | |||
January 25, 2016 | |||
February 17, 2016 | |||
March 27, 2016 | |||
Total | $ | ||
Weighted average cost | $ | ||
March 31, 2016 inventory | $ | $ |
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