Inventory Control Exercise

Date Description Units Unit Cost Total Cost

July 1, 2018 Beginning Inventory 500 $20 $10,000

July 18, 2018 Inventory Purchased 800 $24 $19,200

July 25, 2018 Inventory Purchased 700 $26 $18,200

Total 2,000 $47,400

Happy Hospital used 1,400 units of medical supplies during the month of July 2018.

Required: Write journal entries to record the purchases of medical supplies, inventory value and the use of medical supplies for July 2018 using the following inventory costing methods:

First in, first out (FIFO) method

Last in, first out (LIFO) method