Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total Cost January 1, 20-- Beginning inventory 1,120 $ 8.20 $ 9,184 March 5 1st purchase 910 9.20 8,372 April 16 2nd purchase 400 9.70 3,880 June 3 3rd purchase 700 10.40 7,280 August 18 4th purchase 580 11.10 6,438 September 13 5th purchase 780 12.10 9,438 November 14 6th purchase 390 13.90 5,421 December 3 7th purchase 520 13.95 7,254 5,400 $ 57,267 There are 1,000 units of inventory on hand on December 31. Required: 1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods: Cost of Goods Sold Cost of Ending Inventory a. FIFO b. LIFO c. Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a. FIFO lower-of-cost-or-market b. Weighted-average lower-of-cost-or-market 3. Prepare required entries to apply: a. FIFO lower-of-cost-or-market b. Weighted-average lower-of-cost-or-market If no entry is required, select "No Entry Required". Description Debit Credit a. b.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

See similar textbooks

Related questions

Question

Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.

		Units	Unit Price	Total Cost
January 1, 20--	Beginning inventory	1,120	$	8.20	$	9,184
March 5	1st purchase	910		9.20		8,372
April 16	2nd purchase	400		9.70		3,880
June 3	3rd purchase	700		10.40		7,280
August 18	4th purchase	580		11.10		6,438
September 13	5th purchase	780		12.10		9,438
November 14	6th purchase	390		13.90		5,421
December 3	7th purchase	520		13.95		7,254
		5,400			$	57,267

There are 1,000 units of inventory on hand on December 31.

Required:

1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:

	Cost of Goods Sold	Cost of Ending Inventory
a. FIFO
b. LIFO
c. Weighted-average (round calculations to two decimal places)

2. Assume that the market price per unit (cost to replace) of Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: