Opening Inventory 20 lb. of bacon @ $5.00 per lb 5th: purchase 10 lb. of...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Opening Inventory 20 lb. of bacon @ $5.00 per lb
5th: purchase 10 lb. of bacon @ $5.10 per lb.
20th: purchase 25 lb. of bacon @ $4.50 per lb.
30th: purchase 10 lb. of bacon @ $4.00per lb.
At the end of the month, the steward reports that there is still 20 lbs. of bacon in the storeroom. The Chef has always been a proponent of the FIFO method of evaluation because she has trained her staff to use the method when taking items from the inventory, but still she is curious about LIFO too. The steward on the other hand feels with the number of items needed to be inventoried on a regular basis, the weighted average is the best way to go. Finally, the manager believes that once an item goes into the inventory, it loses its original value and is only worth the cost to replace the item. Based on these differences calculate the closing inventory using these four different methods as well as the cost of food issued.
FIFO:
LIFO:
Weighted Average:
Latest Purchase Price:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
