are presented below.
Description
Inventory
Quantity
Unit Market
Price
B12 38 $ 57
E41 18 180
G19 33 126
L88 18 550
N94 400 7
P24 90 18
R66 8 250
T33 140 20
Z16 15 752
Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:
Last
Purchases Invoice
Next-to-the-Last
Purchases Invoice
Description
Quantity
Purchased
Unit
Cost
Quantity
Purchased
Unit
Cost
B12 30 $ 60 30 $ 59
E41 35 178 20 180
G19 20 128 25 129
L88 10 563 10 560
N94 500 8 500 7
P24 80 22 50 21
R66 5 248 4 260
T33 100 21 100 19
Z16 10 750 9 745
Instructions
Determine the inventory at cost and also at the lower of cost or market, using the firstin, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:
1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the Lower
of C or M column. The first item on the inventory sheet has been completed as an
example.
Inventory Sheet
December 31, 2014
Description
Inventory
Quantity
Unit
Cost
Price
Unit
Market
Price
Total
Cost Market
Lower of
C or M
B12 38 30 $60 $57 $1,800 $1,710
8 59 57 472 456
$2,272 $2,166 $2,166
Answer:
Inventory Sheet
December 31, 2014
Unit Unit Total
Description
Inventory
Quantity
Cost Market Lower of
Price Price Cost Market C or M
B12 38 30 $ 60 $ 57 $ 1,800 $ 1,710
8 59 57 472 456
2,272 2,166 $ 2,166
E41 18 178 180 3,204 3,240 3,204
G19 33 20 128 126 2,560 2,520
13 129 126 1,677 1,638
4,237 4,158 4,158
L88 18 10 563 550 5,630 5,500
8 560 550 4,480 4,400
10,110 9,900 9,900
N94 400 8 7 3,200 2,800 2,800
P24 90 80 22 18 1,760 1,440
10 21 18 210 180
1,970 1,620 1,620
R66 8 5 248 250 1,240 1,250
3 260 250 780 750
2,020 2,000 2,000
T33 140 100 21 20 2,100 2,000
40 19 20 760 800
2,860 2,800 2,800
Z16 15 10 750 752 7,500 7,520
5 745 752 3,725 3,760
11,225 11,280 11,225
Total $41,098 $39,964 $39,873