Data on the physical inventory of Rhino Company as of December 31, 2012, are presented in the working papers. The quantity of each commodity on hand has been determined and recorded on the inventory sheet. Unit market prices have also been determined as of December 31 and recorded on the sheet. The inventory is to be determined at cost and also at the lower of cost or market, using the first-in, first-out method. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Instructions
Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:
Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed as an example.

Transcribed Image Text:

Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Unit Quantity Unit Description Purchased Cost Alpha Beta Charlie Echo Frank George Killo Quebec Romeo Sierra Whiskey X-Ray 30 35 20 130 10 100 10 500 80 60 175 130 24 565 15 385 Purchased Cost S 59 180 129 25 560 14 384 30 20 25 100 10 100 500 50 250 21 750 21 260 19 745 100 10 100