Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process. Date Oct. 1 Oct. 4 Oct. 5 Oct. 20 Oct. 24 Oct. 31 Inventory (beginning). Purchase Transfer out. Purchase Transfer out.. Purchase Units 4,000 3,000 5,000 8,000 7,000 3,000 a. Moving Average-Perpetual system. b. FIFO Perpetual system. Unit Cost $14.00 15.40 16.00 16.80 Required Compute cost of materials transferred out (to work in process) and the cost of its raw materials ending inventory assuming use of: c. LIFO Perpetual system.

Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process. Date Oct. 1 Oct. 4 Oct. 5 Oct. 20 Oct. 24 Oct. 31 Inventory (beginning). Purchase Transfer out. Purchase Transfer out.. Purchase Units 4,000 3,000 5,000 8,000 7,000 3,000 a. Moving Average-Perpetual system. b. FIFO Perpetual system. Unit Cost $14.00 15.40 16.00 16.80 Required Compute cost of materials transferred out (to work in process) and the cost of its raw materials ending inventory assuming use of: c. LIFO Perpetual system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem 9-72
Perpetual System-
Computing Inventory
and Costs of Goods
Transferred Out Using
Moving Average, FIFO, and
LIFO LOS
MBC
Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process.
Date
Oct. 1
Oct. 4
Oct. 5
Oct. 20
Oct. 24
Oct. 31
Inventory (beginning)
Purchase
Transfer out.
Purchase
Transfer out.
Purchase
Units
4,000
3,000
5,000
8,000
7,000
3,000
a. Moving Average-Perpetual system.
b. FIFO Perpetual system.
Unit Cost
$14.00
15.40
16.00
16.80
Required
Compute cost of materials transferred out (to work in process) and the cost of its raw materials ending inventory
assuming use of:
c. LIFO Perpetual system.

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