Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: UnitsUnit PriceTotal CostJanuary 1Beginning inventory800$11.00$8,800March 51st purchase60012.007,200April 162nd purchase50012.506,250June 33rd purchase70014.009,800August 184th purchase80015.0012,000September 135th purchase90017.0015,300November 146th purchase40018.007,200December 37th purchase50020.3010,150 5,200 $76,700 There are 1,100 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:(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 Hall’s inventory on December 31 was $16. 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-market3.Prepare required entries to apply:(a)FIFO lower-of-cost-or-market(b)Weighted-average lower-of-cost-or-market
Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:
Units
Unit Price
Total Cost
January 1
Beginning inventory
800
$11.00
$8,800
March 5
1st purchase
600
12.00
7,200
April 16
2nd purchase
500
12.50
6,250
June 3
3rd purchase
700
14.00
9,800
August 18
4th purchase
800
15.00
12,000
September 13
5th purchase
900
17.00
15,300
November 14
6th purchase
400
18.00
7,200
December 3
7th purchase
500
20.30
10,150
5,200
$76,700
There are 1,100 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:
(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 Hall’s inventory on December 31 was $16. 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
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