For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent.

Instructions:

For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent.

1. Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods.

2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods.

3. What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average? If no entry is required, type "No entry required" in the account name box and leave the amount boxes blank or enter "0".

Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

		Units	Unit Price		Total Cost
Jan. 1	Beginning inventory	10	$21		$210
Mar. 5	1st purchase	10	22		220
Sept. 9	2nd purchase	10	25		250
Dec. 8	3rd purchase	10	30		300
		40			$980

There are 10 units of inventory on hand on December 31.

Inventory Valuation

For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent.

Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods:

a. FIFO $

b. Weighted-average $

2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

a. FIFO lower-of-cost-or-market $

b. Weighted-average lower-of-cost-or-market $

Answer rating: 100% (QA)

1 a FIFO 30000 b Weighted average 24500 Working Units Uni... View the full answer