Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the most recent year are as follows:Assuming that current market price of the one unit is $225 and materiality level is set at $600, make necessary journal entry to adjust the balance of ending inventory under each cost assumption – FIFO, LIFO, Average cost. Number ofunitsCost perunitTotal CostInventory, Jan. 135$2227 770Feb. 1 purchase4722510 575Mar. 1 purchase5823113 398Apr. 1 purchase222355 170Goods available for sale16236 913Jun. 1 sale129Sept. 1 purchase4524811 160Inventory, Dec. 3178

Name: Sandvik Mining uses a periodic inventory system. One of the company’s
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Description: Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the most recent year are as follows:Assuming that curr

Inventory is recognized at cost or net realizable value whichever is lower. There is some technique…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the most recent year are as follows:

Assuming that current market price of the one unit is $225 and materiality level is set at $600, make necessary journal entry to adjust the balance of ending inventory under each cost assumption – FIFO, LIFO, Average cost.

Number of
units
Cost per
unit
Total Cost
Inventory, Jan. 1
35
$222
7 770
Feb. 1 purchase
47
225
10 575
Mar. 1 purchase
58
231
13 398
Apr. 1 purchase
22
235
5 170
Goods available for sale
162
36 913
Jun. 1 sale
129
Sept. 1 purchase
45
248
11 160
Inventory, Dec. 31
78

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