Question
Lannister Inc. holds 12,000 units of inventory on January 1, 2017. Under FIFO (first-in, first-out) the inventory lot costs are: Inventory Lot Date Units Cost
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Lannister Inc. holds 12,000 units of inventory on January 1, 2017.
Under FIFO (first-in, first-out) the inventory lot costs are:
Inventory Lot
Date
Units
Cost / Unit
Total Cost
H
12/13/2016
6,000
$120
$720,000
I
12/22/2016
6,000
$125
$750,000
Under LIFO (last-in, first-out) the same inventory has the following lot costs:
Inventory Lot
Date
Units
Cost / Unit
Total Cost
A
4/22/2012
2,000
$60
$120,000
F
10/15/2014
4,000
$84
$336,000
I
12/22/2016
6,000
$125
$750,000
Under average cost the same 12,000 inventory units have a total cost of $1,320,600.
During January 2017, Lannister records the following transactions (in chronological order):
- Sells 7,000 units of inventory with revenue of $175 per unit.
- Purchases 4,000 units of inventory at a cost of $130 per unit.
- Sells 2,000 units of inventory with revenue of $180 per unit.
- Purchases 3,000 units of inventory at a cost of $132 per unit.
- Sells 2,000 units of inventory with revenue of $184 per unit.
- Counts ending inventory units of 8,000 units on January 31.
In answering the following questions, assume that Lannister uses a periodic inventory system. Do not include a $ with any of your answers. Unless otherwise instructed, enter your answers as whole numbers.
- How many units of inventory did Lannister have available for sale during the month of January?
- Using FIFO, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Using FIFO, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using FIFO, what was Lannisters cost of goods sold (COGS) for January? $
- Using LIFO, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Using LIFO, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using LIFO, what was Lannisters cost of goods sold (COGS) for January?
- Using average cost, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Based on your answer to h above, what was average cost per unit of inventory available for sale during January? For this question only, round your answer to 3 decimal places (xx.xxx) . $
- Using the rounded average cost value you computed in part i, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using your answers to h and j above, what was Lannisters cost of goods sold (COGS) for January using average cost? $
- If a company reports inventory value of $40,000 using LIFO, and its LIFO reserve is $25,000, what value for inventory would it have reported if it had used FIFO instead? $
Display answers in a list form please.
Lannister Inc. holds 12,000 units of inventory on January 1, 2017.
Under FIFO (first-in, first-out) the inventory lot costs are:
Inventory Lot | Date | Units | Cost / Unit | Total Cost |
H | 12/13/2016 | 6,000 | $120 | $720,000 |
I | 12/22/2016 | 6,000 | $125 | $750,000 |
Under LIFO (last-in, first-out) the same inventory has the following lot costs:
Inventory Lot | Date | Units | Cost / Unit | Total Cost |
A | 4/22/2012 | 2,000 | $60 | $120,000 |
F | 10/15/2014 | 4,000 | $84 | $336,000 |
I | 12/22/2016 | 6,000 | $125 | $750,000 |
Under average cost the same 12,000 inventory units have a total cost of $1,320,600.
During January 2017, Lannister records the following transactions (in chronological order):
- Sells 7,000 units of inventory with revenue of $175 per unit.
- Purchases 4,000 units of inventory at a cost of $130 per unit.
- Sells 2,000 units of inventory with revenue of $180 per unit.
- Purchases 3,000 units of inventory at a cost of $132 per unit.
- Sells 2,000 units of inventory with revenue of $184 per unit.
- Counts ending inventory units of 8,000 units on January 31.
In answering the following questions, assume that Lannister uses a periodic inventory system. Do not include a $ with any of your answers. Unless otherwise instructed, enter your answers as whole numbers.
- How many units of inventory did Lannister have available for sale during the month of January?
- Using FIFO, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Using FIFO, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using FIFO, what was Lannisters cost of goods sold (COGS) for January? $
- Using LIFO, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Using LIFO, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using LIFO, what was Lannisters cost of goods sold (COGS) for January?
- Using average cost, what was Lannisters cost of goods available for sale (COGAS) for January? $
- Based on your answer to h above, what was average cost per unit of inventory available for sale during January? For this question only, round your answer to 3 decimal places (xx.xxx) . $
- Using the rounded average cost value you computed in part i, what was the value of Lannisters ending inventory on January 31, 2017? $
- Using your answers to h and j above, what was Lannisters cost of goods sold (COGS) for January using average cost? $
- If a company reports inventory value of $40,000 using LIFO, and its LIFO reserve is $25,000, what value for inventory would it have reported if it had used FIFO instead? $
Display answers in a list form please.
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