Alternative Inventory Methods?Comprehensive Belanna Corporation began operations on December 1, 2010. The only inventory transaction in 2010 was the purchase of inventory on December 10, 2010, at a cost of $20 per unit. None of this inventory was sold in 2010. Relevant information is as follows.

Ending inventory units

December 31, 2010 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 100

December 31, 2011, by purchase date

December 2, 2011 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 100

July 20, 2011 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 30 ? ? ? ?130

During the year the following purchases and sales were made. The company uses the periodic inventory method.

(a) Determine Ending inventory under

(1) Specific identification,

(2) FIFO,

(3) LIFO, and

(4) Average cost.

(b) Determine Ending inventory using dollar-value LIFO. Assume that the December 2, 2011, purchase cost is the current cost of inventory.

Transcribed Image Text:

Sales Purchases 300 units at $24 units at 25 200 units at 28 100 units at 30 March 15 200 300 170 200 April 10 August 20 November 18 July 20 September 4 December 12 December 2