Assume that the December 2, 2013, purchase cost is the current cost of inventory. (Hint: The…

(Alternative Inventory Methods—Comprehensive) Belanna Corporation began operations on December 1, 2012. The only inventory transaction in 2012 was the purchase of inventory on December 10, 2012, at a cost of $20 per unit. None of this inventory was sold in 2012. Relevant information is as follows.

Ending inventory   units    

31-Dec-12  

100

December   31, 2013, by purchase date    

2-Dec-13

100  

20-Jul-13

30

130

During the year, the following purchases and sales were made.

Purchases  

Sales  

15-Mar

300   units at $24

10-Apr

200

20-Jul

300   units at 25

20-Aug

300

4-Sep

200   units at 28

18-Nov

170

2-Dec

100   units at 30

12-Dec

200

The company uses the periodic inventory method.

Instructions

(a) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average cost. (Round unit cost to four decimal places.)

(b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2013, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base-layer priced at $20 per unit.)

 

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