Question
Novak Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a
Novak Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $26 per unit. None of this inventory was sold in 2019. Relevant information is as follows.
Ending inventory units | ||||
December 31, 2019 | 137 | |||
December 31, 2020, by purchase date | ||||
December 2, 2020 | 137 | |||
July 20, 2020 | 50 | 187 |
During the year 2020, the following purchases and sales were made.
Purchases | Sales | |||||||
March 15 | 337 units | at | $31 | April 10 | 237 | |||
July 20 | 337 units | at | 32 | August 20 | 337 | |||
September 4 | 237 units | at | 36 | November 18 | 187 | |||
December 2 | 137 units | at | 39 | December 12 | 237 |
The company uses the periodic inventory method.
(a2) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost. (Round answer to 0 decimal places, e.g. 2,760.)
(b1) Calculate price index. (Round answer to 4 decimal places, e.g. 2.7600.)
(b2) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory.(Hint: The beginning inventory is the base layer priced at $26 per unit.) (Round answer to 0 decimal places, e.g. 2,760.)
PLEASE HELP ME. I have posted this once already, the other person to answer it got it incorrect. I just need some help.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started