Question

Exercise 8-12 Barbara Jones Company was formed on December 1, 2019. The following information is available from Jones's inventory records for Product BAP Units Unit Cost January 1, 2020 (beginning inventory) 480 $ 6 Purchases: January 5, 2020 960 7 January 25, 2020 February 16, 2020 1,040 8 640 9 March 26, 2020 480 10 A physical inventory on March 31, 2020, shows 1,280 units on hand. Prepare schedule to compute the ending inventory at March 31, 2020, under FIFO inventory method. BARBARA JONES COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2020 Units Unit Cost Total Cost Purchases March 26, 2020 480 10 $ Purchases February 16, 2020 Ending Inventory acy PolicyI R 2000-2019 John Wiley &Sons. Inc. All Rights Reserved. A Division of John Wiley & Sons. Inc

Answer 1

Only first question, i.e, Exercise 8-12 has been solved.

FIFO Cost of Goods Available for Sale Cost of Goods sold - FIFO Unite Cost per Cost of Goods Lunite old cost per Cost of goods unit Available for unit 480 $ 6.00 $ 2,880 480 $ 6.00 $ 2,880 Ending Inventory-FIFO in Cost per Ending unit Inventory 0 $ 6.00 $ sold Beginning Inventory Purchases: Jan 5, 2020 Jan 25, 2020 Feb 16, 2020 Mar 26, 2020 Total 960 880 $ $ 7.00 8.00 $ $ 6,720 7,040 960 1040 640 480 3600 $ $ $ $ 7.00 $ 8.00 $ 9.00 $ 10.00 $ $ 6,720 8,320 5,760 4,800 28,480 0 160 640 480 1280 $ 7.00 $ $ 8.00 $ $ 9.00 $ $ 10.00 $ $ 1,280 5,760 4,800 11,840 2320 $ 16,640 | LIFO Cost of Goods Available for Sale Cost per Cost of Goods Units unit Available for 480 $ 6.00 $ 2,880 Lunits sold Cost of Goods sold - LIFO L Ending Inventory-LIFO | Cost per Cost of goods 4 units Cost per Ending unit sold unit Inventory $ 6.00 $ 480 $ 6.00 $ 2,880 5,600 Beginning Inventory Purchases: Jan 5, 2020 Jan 25, 2020 Feb 16, 2020 Mar 26, 2020 960 1040 640 480 3600 $ $ $ $ 7.00 8.00 9.00 10.00 $ $ $ $ $ 6,720 8,320 5,760 4,800 28,480 160 1040 640 480 2320 $ 7.00 $ 8.00 $ 9.00 $ 10.00 $ $ $ $ $ 1,120 8,320 5,760 4,800 20,000 800 0 0 0 1280 $ 7.00 $ $ 8.00 $ $ 9.00 $ $ 10.00 $ $ - 8,480 Total Average Cost Cost of Goods Available for Sale Units Cost per Cost of Goods unit Available for 480 $ 6.00 $ 2,880 Cost of Goods sold - Avg cost Cost per Cost of goods unit sold Ending Inventory-Avg cost Cost per Ending unit Inventory Units sold units 2320 $ 7.91 $ 18,351 1280 $ 7.91 $ 10,125 Beginning Inventory Purchases: Jan 5, 2020 Jan 25, 2020 Feb 16, 2020 Mar 26, 2020 960 1040 640 480 3600 28480/3600 $ $ $ $ 7.00 8.00 9.00 10.00 $ $ $ $ 6,720 8,320 5.760 4,800 28,480 7.91 Total $ 2320 $ 18,351 1280 $ 10,125 Average cost p.u $ Conclusion Inventory reported at the end of each year FIFO $ 11,840 LIFO $ 8,480 Average Cost $ 10,125