3. Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac Appliances Cost of the Inventory-Weighted Average Method December 31 Model Quantity Unit Cost Total Cost A10 B15 E60 50 G83 9 J34 13 M90 5 Q70 Total 8 4. LIFO would be preferred for income tax purposes in periods of rising prices. Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Model Inventory, January 1 Inventory Count, 1st 2nd 3rd December 31 A10 4 at $ 38 4 at $ 41 4 at $ 44 5 B15 8 at $ 82 4 at 73 3 at 79 6 at 86 98 7 E60 3 at 72 3 at 62 15 at 65 9 at 67 5 G83 7 at 240 6 at 248 5 at 258 10 at 257 9 J34 12 at 68 10 at 70 16 at 77 16 at 78 13 M90 2 at 115 2 at 117 3 at 135 3 at 137 5 Q70 5 at 160 4 at 170 4 at 175 7 at 180 8 Required: 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first.
3. Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac Appliances Cost of the Inventory-Weighted Average Method December 31 Model Quantity Unit Cost Total Cost A10 B15 E60 50 G83 9 J34 13 M90 5 Q70 Total 8 4. LIFO would be preferred for income tax purposes in periods of rising prices. Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Model Inventory, January 1 Inventory Count, 1st 2nd 3rd December 31 A10 4 at $ 38 4 at $ 41 4 at $ 44 5 B15 8 at $ 82 4 at 73 3 at 79 6 at 86 98 7 E60 3 at 72 3 at 62 15 at 65 9 at 67 5 G83 7 at 240 6 at 248 5 at 258 10 at 257 9 J34 12 at 68 10 at 70 16 at 77 16 at 78 13 M90 2 at 115 2 at 117 3 at 135 3 at 137 5 Q70 5 at 160 4 at 170 4 at 175 7 at 180 8 Required: 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:3. Determine the cost of the inventory on December 31 by the weighted average cost method.
Dymac Appliances
Cost of the Inventory-Weighted Average Method
December 31
Model
Quantity
Unit Cost
Total Cost
A10
B15
E60
50
G83
9
J34
13
M90
5
Q70
Total
8
4. LIFO would be preferred for income tax purposes in periods of rising prices.
Transcribed Image Text:Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the
inventory count at December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
Inventory Count,
1st
2nd
3rd
December 31
A10
4 at
$ 38
4 at
$ 41
4 at
$ 44
5
B15
8 at
$ 82
4 at
73
3 at
79
6 at
86
98
7
E60
3 at
72
3 at
62
15 at
65
9 at
67
5
G83
7 at
240
6 at
248
5 at
258
10 at
257
9
J34
12 at
68
10 at
70
16 at
77
16 at
78
13
M90
2 at
115
2 at
117
3 at
135
3 at
137
5
Q70
5 at
160
4 at
170
4 at
175
7 at
180
8
Required:
1. Determine the cost of the inventory on December 31 by the first-in, first-out method.
If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each
purchase. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first.
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