Unit Market
Description Price
Inventory
Quantity
A54 37 $ 56
C77 24 178
F66 30 132
H83 21 545
K12 375 5
Q58 90 18
S36 8 235
V97 140 20
Y88 17 744
Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:
Purchases Invoice
Next-to-the-Last
Purchases Invoice
Description
Quantity
Purchased
Unit
Cost
Quantity
Purchased
Unit
Cost
A54 30 $ 60 40 $ 58
C77 25 174 15 180
F66 20 130 15 128
H83 6 547 15 540
K12 500 6 500 7
Q58 75 25 80 26
S36 5 256 4 260
V97 100 17 115 16
Y88 10 750 8 740
Instructions
Determine the inventory at cost and also at the lower of cost or market, using the first-in,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:
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
Unit Inventory
Quantity
Unit
Cost
Price
Total
Market
Price
Total
Cost Market
Lower of
C or M
A54 37 30 60 $56 $1,800 $1,680
7 58 56 406 392
$2,206 $2,072 $2,072
Answer:
Inventory Sheet
December 31, 2014
Unit Unit Total
Commodity
Inventory
Quantity
Cost Market Lower of
Price Price Cost Market C or M
A54 37 30 $ 60 $ 56 $ 1,800 $ 1,680
7 58 56 406 392
2,206 2,072 $ 2,072
C77 24 174 178 4,176 4,272 4,176
F66 30 20 130 132 2,600 2,640
10 128 132 1,280 1,320
3,880 3,960 3,880
H83 21 6 547 545 3,282 3,270
15 540 545 8,100 8,175
11,382 11,445 11,382
K12 375 6 5 2,250 1,875 1,875
Q58 90 75 25 18 1,875 1,350
15 26 18 390 270
2,265 1,620 1,620
S36 8 5 256 235 1,280 1,175
3 260 235 780 705
2,060 1,880 1,880
V97 140 100 17 20 1,700 2,000
40 16 20 640 800
2,340 2,800 2,340
Y88 17 10 750 744 7,500 7,440
7 740 744 5,180 5,208
12,680 12,648 12,648
Total $43,239 $42,572 $41,873