Question
Cost Allocation and Lower-of-Cost-or-Market Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total
Cost Allocation and Lower-of-Cost-or-Market
Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.
Units | Unit Price | Total Cost | ||||
January 1, 20-- | Beginning inventory | 1,110 | $ | 8.20 | $ | 9,102 |
March 5 | 1st purchase | 890 | 9.20 | 8,188 | ||
April 16 | 2nd purchase | 390 | 9.70 | 3,783 | ||
June 3 | 3rd purchase | 690 | 10.40 | 7,176 | ||
August 18 | 4th purchase | 600 | 11.10 | 6,660 | ||
September 13 | 5th purchase | 810 | 12.10 | 9,801 | ||
November 14 | 6th purchase | 390 | 14.20 | 5,538 | ||
December 3 | 7th purchase | 480 | 14.25 | 6,840 | ||
5,360 | $ | 57,088 |
There are 1,000 units of inventory on hand on December 31.
Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods Sold | Cost of Ending Inventory | |
a. FIFO | $fill in the blank 1 | $fill in the blank 2 |
b. LIFO | $fill in the blank 3 | $fill in the blank 4 |
c. Weighted-average (round calculations to two decimal places) | $fill in the blank 5 | $fill in the blank 6 |
2. Assume that the market price per unit (cost to replace) of Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:
a. FIFO lower-of-cost-or-market | $fill in the blank 7 |
b. Weighted-average lower-of-cost-or-market | $fill in the blank 8 |
3. Prepare required entries to apply:
a. FIFO lower-of-cost-or-market | |
b. Weighted-average lower-of-cost-or-market |
If no entry is required, select "No Entry Required".
Description | Debit | Credit | |
---|---|---|---|
a. | fill in the blank 10 | fill in the blank 11 | |
fill in the blank 13 | fill in the blank 14 | ||
b. | fill in the blank 16 | fill in the blank 17 | |
fill in the blank 19 | fill in the blank 20 |
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