R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 20 $12 $240 Apr. 2 - 1st Purchase 30 $13 390 Ailig. 6 - 2nd Purchase 25 $14 350 Nov. 9 - 3rd Purchase 25 $18 450 $1,430 here are 20 units of inventory on hand at December 31, 20--. 1. Calculate the total amount to be assigned to the ending inventory under each of the following methods: a. First-in, first-out (FIFO) %24 b. Last-in, first-out (LIFO) 24 2. Assumê the market price per unit (cost to replace) of the R. &. K. Company's inventory on December 31, was $16. the total amount to be assigned to the ending inventory on December 31, under each of the following methods:
R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 20 $12 $240 Apr. 2 - 1st Purchase 30 $13 390 Ailig. 6 - 2nd Purchase 25 $14 350 Nov. 9 - 3rd Purchase 25 $18 450 $1,430 here are 20 units of inventory on hand at December 31, 20--. 1. Calculate the total amount to be assigned to the ending inventory under each of the following methods: a. First-in, first-out (FIFO) %24 b. Last-in, first-out (LIFO) 24 2. Assumê the market price per unit (cost to replace) of the R. &. K. Company's inventory on December 31, was $16. the total amount to be assigned to the ending inventory on December 31, under each of the following methods:
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 7SPB: COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Companys beginning inventory and purchases during...
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![R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:
Units
Unlt Price
Total Cost
Jan. 1 Beginning inventory
20
$12
$240
Apr. 2 - 1st Purchase
30
$13
390
Aig. 6 - 2nd Purchase
25
$14
350
Nov. 9 - 3rd Purchase
25
$18
450
$1,430
There are 20 units of inventory on hand at December 31, 20--.
1. Calculate the total amount to be assigned to the ending inventory under each of the following methods:
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
2. Assumé the market price per unit (cost to replace) of the R. &. K. Company'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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F848db58c-49e7-4c61-ada4-3be315d5a305%2F5780dbb2-1d5a-4d83-8a05-734d0ea0df1e%2Fefvls1k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:
Units
Unlt Price
Total Cost
Jan. 1 Beginning inventory
20
$12
$240
Apr. 2 - 1st Purchase
30
$13
390
Aig. 6 - 2nd Purchase
25
$14
350
Nov. 9 - 3rd Purchase
25
$18
450
$1,430
There are 20 units of inventory on hand at December 31, 20--.
1. Calculate the total amount to be assigned to the ending inventory under each of the following methods:
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
2. Assumé the market price per unit (cost to replace) of the R. &. K. Company'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
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