QUESTION 1 8 points Save Answe 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 H 12/13/2016 6,000 $120 Total Cost $720,000 1 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 1 12/22/2016 6,000 $125 $750,000 Under average cost the same 12,000 inventory units have a total cost of $1,320,700. During January 2017, Lannister records the following transactions in chronological order): . Sells 6,000 units of inventory with revenue of $165 per unit. Purchases 3,000 units of inventory at a cost of $140 per unit. Sells 1,000 units of inventory with revenue of $170 per unit. Purchases 5,000 units of inventory at a cost of $125 per unit. Sells 2,000 units of inventory with revenue of $184 per unit. Counts ending inventory units of 11,000 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. 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. a. How many units of inventory did Lannister have available for sale during the month of January? b. Using FIFO, what was Lannister's cost of goods available for sale (COGAS) for January? $ c. Using FIFO, what was the value of Lannister's ending inventory on January 31, 2017? $ d. Using FIFO, what was Lannister's cost of goods sold (COGS) for January? $ e. Using LIFO, what was Lannister's cost of goods available for sale (COGAS) for January? $ f. Using LIFO, what was the value of Lannister's ending inventory on January 31, 2017? $ g. Using LIFO, what was Lannister's cost of goods sold (COGS) for January? h. Using average cost, what was Lannister's cost of goods available for sale (COGAS) for January? $ i. 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). $ j. Using the rounded average cost value you computed in parti, what was the value of Lannister's ending inventory on January 31, 2017? $ k. Using your answers to h and j above, what was Lannister's cost of goods sold (COGS) for January using average cost? $ I. 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? $
