Tori Amos Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $20 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 100 December 31, 2020, by purchase date December 2, 2020 100 July 20, 2020 50 150 During the year, the following purchases and sales were made. Purchases Sales March 15 300 units at $24 April 10 200 July 20 300 units at 25 August 20 300 September 4 200 units at 28 November 18 150 December 2 100 units at 30 December 12 200 The company uses the periodic inventory method. Instructions a. Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost. b. Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $20 per unit.)
Tori Amos Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $20 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 100 December 31, 2020, by purchase date December 2, 2020 100 July 20, 2020 50 150 During the year, the following purchases and sales were made. Purchases Sales March 15 300 units at $24 April 10 200 July 20 300 units at 25 August 20 300 September 4 200 units at 28 November 18 150 December 2 100 units at 30 December 12 200 The company uses the periodic inventory method. Instructions a. Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost. b. Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $20 per unit.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tori Amos Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $20 per unit. None of this inventory was sold in 2019. Relevant information is as follows.
| Ending inventory units | ||
| December 31, 2019 | 100 | |
| December 31, 2020, by purchase date | ||
| December 2, 2020 | 100 | |
| July 20, 2020 | 50 | 150 |
During the year, the following purchases and sales were made.
| Purchases | Sales | |||
| March 15 | 300 units at $24 | April 10 | 200 | |
| July 20 | 300 units at 25 | August 20 | 300 | |
| September 4 | 200 units at 28 | November 18 | 150 | |
| December 2 | 100 units at 30 | December 12 | 200 |
The company uses the periodic inventory method.
Instructions
a. Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost.
b. Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $20 per unit.)
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