Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first month’s milk purchases and sales at its Freeport, Florida, location follow: Nov. 2 Purchased 11 gallons @ $2.15 each 6 Purchased 2 gallons @ $2.80 each 8 Sold 6 gallons of milk to a customer 13 Purchased 3 gallons @ $2.85 each 14 Sold 4 gallons of milk to a customer Requirements 1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method. 2. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method. 3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.
Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first
month’s milk purchases and sales at its Freeport, Florida, location follow:
Nov. 2 Purchased 11 gallons @ $2.15 each
6 Purchased 2 gallons @ $2.80 each
8
Sold 6 gallons of milk to a
customer
13 Purchased 3 gallons @ $2.85 each
14
Sold 4 gallons of milk to a
customer
Requirements
1. Determine the amount that would be reported in ending merchandise inventory on November 15
using the FIFO inventory costing method.
2. Determine the amount that would be reported in ending merchandise inventory on November 15
using the LIFO inventory costing method.
3. Determine the amount that would be reported in ending merchandise inventory on November 15
using the weighted-average inventory costing method. Round all amounts to the nearest cent.
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