Question

Details regarding the inventory of appliances on January 1, 20Y7, purchases invoices during the year, and the inventory count on December 31, 20Y7, of Amsterdam Appliances are summarized as follows

Answer 1

Answer:

Using LIFO:

Model      Ending inventory           Cost

A10                    6                         (4 x $64) + (2 x $70) = $396

B15                    8                         (8 x $176) = $1,408

E60                   5                         (3 x $70) + (2 x $65) = $340

G83                  9                          (7 x $242) + (2 x $250) = $2,194

J34                  15                         (12 x $240) + (3 x $246) = $3,618

M90                 5                          (2 x $108) + (2 x $110) + $128 = $564

Q70                 8                          (5 x $160) + (3 x $170) = $1,310

total cost of ending inventory = $9,830

Using FIFO:

Model      Ending inventory           Cost

A10                    6                         (4 x $76) + (2 x $70) = $444

B15                    8                         (6 x $184) + (2 x $170) = $1,444

E60                   5                         (5 x $70) = $350

G83                  9                          (9 x $259) = $2,331

J34                  15                         (15 x $270) = $4,050

M90                 5                          (3 x $130) + (2 x $128) = $646

Q70                 8                          (7 x $180) + (1 x $175) = $1,435

total cost of ending inventory = $10,700