Question

Martinez Company was formed on December 1, 2016. The following information is available from Martinez’s inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 696 $ 6.00 Purchases: January 5, 2017 1,392 7.00 January 25, 2017 1,508 8.00 February 16, 2017 928 9.00 March 26, 2017 696 10.00 A physical inventory on March 31, 2017, shows 1,856 units on hand. Collapse question part

(a) Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.

MARTINEZ COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2017
		Units		Unit Cost		Total Cost
				$		$
						$

Last: Compute the ending inventory at March 31, 2017, under weighted average inventory method.

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Answer 1

(a) computation of cost of ending inventory under FIFO prventory method: computation of cost of goods available for sale: Particulars. Date units perunit cost Totalcom 696 Begining inventory 1.1.2017 $4,176 $9,944 5.1.2017 1392 purchases purchases $12,064 25.1.2017 1508 $8,352 16.02.2017 928 $9 purchases $10 26.03.2013 696 $6960 purchases 5,220 Total cost of good scalable for $41296 sale physical inventory on march 31-2017 1,856 units Computation of cost of Ending inventesey of 1856 units By using FIFO Inventory methods units unit cost Totalcost on. 26.03 2017 696 onits $10 $6960 on 16.02.2017 928units X $9 $8352 on 25.01.2017 232 units x $8.= $1856 - $77,164 cost of Ending Inventory of $17, 168 1,856 units

b) computation of cost of ending Inventory of 1856 units using weighted average inventory method: Kleigued averaged cost per unit Total cost of goods available For sale Total No.of units $41, 296 5,220 unts $7.91 perenit costof ending inventory 1856 units on march. 31. 2017 1856 units X $7.91 ($14,683 For any clanification, please comment Thank you

units using $4176 (C) Computation of cost of Ending inventory of 1856 LIFO methods Date units perunit cost total cost 161.2017 696 units $6 5.1.2017 1160 units $7 $8120 1856units cost of Ending somentery on 31.3.2017 $12,296,