Data on the physical inventory of Winesap Co. as of December 31, 2010, 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:
1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. 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 anexample.

Transcribed Image Text:

Next-to-the-Last Purchases Invoice Last Purchases Invoice Quantity Purchased Quantity Purchased Unit Cost Unit Cost Description $ 60 $ 59 Alpha 10 Beta 30 30 25 40 170 15 180 Charlie 4 132 15 131 Echo 9 Frank 6 150 25 100 27 550 15 540 George 15 90 16 100 15 Killo 6 400 398 Quebec 12 500 500 75 Romeo 7 25 80 26 Sierra 3 250 260 Washburn 2 100 15 115 14 X-Ray 4 10 750 740