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Blue Corp. had 1,800 units of part T on hand April 1, 2017, costing $8.00 each....

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Accounting

Blue Corp. had 1,800 units of part T on hand April 1, 2017,costing $8.00 each. During April, Blue made the following purchasesof part T.

UnitsUnit
Cost
April42,800$8.25
104,8008.40
191,2009.00
292,5009.90


A physical count at April 30, 2017 showed 4,000 units of Part T onhand.

Using the FIFO method, what is the cost of part T inventory atApril 30, 2017? Using the LIFO method, what is the inventory cost?Using the average-cost method, what is the inventory cost?

Answer & Explanation Solved by verified expert
3.9 Ratings (589 Votes)

Answer-----------

FIFO LIFO Weighted Average
Ending Inventory $    38,070 $ 32,550 $           34,617

Working

Units Cost per unit value
Beginning Balance 1800 $       8.00 $ 14,400
Purchases
2800 $       8.25 $ 23,100
4800 $       8.40 $ 40,320
1200 $       9.00 $ 10,800
2500 $       9.90 $ 24,750
Cost of goods available for sale 13100 $ 113,370

.

Average Cost of Inventory
Units (A) 13100
Total Cost (B) $ 113,370
Average Cost (C=B/A) $ 8.65

.

FIFO
Total Units Available for sale 13100
Units Sold 9100
Closing Stock in Units 4000
Valuation
Ending Inventory 2500 @ $               9.90 $ 24,750
1200 @ $               9.00 $ 10,800
300 @ $               8.40 $ 2,520
Value Of Ending Inventory $ 38,070

.

LIFO
Total Units Available for sale 13100
Units Sold 9100
Closing Stock in Units 4000
Valuation
Ending Inventory 1800 @ $               8.00 $ 14,400
2200 @ $               8.25 $ 18,150
Value Of Ending Inventory $            32,550

.

Weighted Average method
Total Units Available for sale 13100
Units Sold 9100
Closing Stock in Units 4000
Valuation
Ending Inventory 4000 @ $           8.6542 $            34,617

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