Question

#6 and #7

Question 6 The following items of a particular commodity were available for sale during the year Beginning inventory First purchase Second purchase Third purchase 10 units at $50 25 units at $53 30 units at $54 15 units at $60 The firm uses the PERIODIC system and there are 18 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the first-in, first-out method(FIFO)? $928 o $1,062 $1,032 $1,170 Question 7 4 pts The following items of a particular commodity were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 10 units at $60 25 units at $63 30 units at $64 10 units at $70 The firm uses the PERIODIC system and there are 20 units of the commodity on hand at the end of the year What is the amount of inventory at the end of the year according to the last-in, first-out method/LIFO)? $1,220 51,230 51,340 $1.240

Answer 1

Answer:

6. Option 2nd is correct. i.e $1,062

6.Calculation of FIFO inventory cost per unit
						particulars	Unit	Rate($)	Total($)
	Beginning inventory	10	50	500
1	Purchase	25	53	1325
2	Purchase	30	54	1620
3	Purchase	15	60	900
	Total	80		4,345
	ending invetory unit	18
	Uesing FIFO	15	60	900
		3	54	162
Ans	Ending inventory amount	18		1062

7.  Option 2nd is correct. i.e $1,230

7.Calculation of LIFO inventory cost per unit
						particulars	Unit	Rate($)	Total($)
	Beginning inventory	10	60	600
1	Purchase	25	63	1575
2	Purchase	30	64	1920
3	Purchase	10	70	700
	Total	75		4,795
	ending invetory unit	18
	Uesing FIFO	10	60	600
		10	63	630
Ans	Ending inventory amount	20		1230