Question
Fir Ridge Company uses a periodic inventory system. It entered into the following purchases and sales transactions for October. Date Activities Units Acquired at Cost
Fir Ridge Company uses a periodic inventory system. It entered into the following purchases and sales transactions for October.
Date | Activities | Units Acquired at Cost | Units Sold at Retail |
Oct. 1 | Beginning inventory | 170 units @ $75 per unit | |
Oct. 5 | Purchase | 430 units @ $80 per unit | |
Oct. 13 | Sales | 450 units @ $120 per unit | |
Oct. 19 | Purchase | 300 units @ $85 per unit | |
Oct. 25 | Purchase | 330 units @ $90 per unit | |
Oct. 29 | Sales | 290 units @ $130 per unit |
For specific identification, the October 13 sale consisted of 90 units from beginning inventory and 360 units from the October 5 purchase; the October 29 sale consisted of 100 units from the October 19 purchase and 190 units from the October 25 purchase.
- Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)
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