Question

Olca Exercise 6-16 (Part Level Submission) Bufford Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Bufford purchased 6 units at $660 each. The company sold 2 units on January 8 and 4 units on January 15. v (a) Your answer is correct. Compute the ending inventory under FIFO. (Round answer to 0 decimal places, e.g. 1,250.) O LO L 00 Old Slui. FIFO The ending inventory 1980 Click if you would like to Show Work for this question: Open Show Work C E O SHOW ANSWER C LINK TO TEXT Attempts: 1 of 15 used (b) Your answer is correct. Compute the ending inventory under LIFO. (Round answer to o decimal places, e.g. 1,250.)

Answer 1

PURCHASED DATE	Quantity	Amount
January 1st	3 units	600 per unit
January 10th	6 units	660 Per unit
Closing inventory under FIFO
Sold date	Quantity	Amount
January 8th	2 units of 600 per unit
January 15th	1 unit of 600 per unit and 3 units of 660 per unit
Closing balance	3 units of 660 per unit	1980
Closing inventory under LIFO
Sold date	Quantity	Amount
January 8th	2 units of 600 per unit
January 15th	4 units of 660 per unit
Closing balance	2 units of 660 per unit and 1 unit of 600 per unit	1920
	(660*2+600*1)
Closing inventory under Moving Average cost
Sold date	Quantity	Amount
January 8th	2 units of 600 per unit
January 15th	4 units of 660 per unit
Average cost on January 15th before sale	(600)+(660*6)/7 units =4560/7 =651.43
Closing balance	3 units of 651.43	1954
	(651.43*3)