Inventory by Three Cost Flow Methods

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:

Purchases Invoices

Model

Inventory, January 1

1st

2nd

3rd

Inventory Count, December 31

A10

4 at $ 64

4 at $ 70

4 at $ 76

6

B15

8 at $176

4 at 158

3 at 170

6 at 184

8

E60

3 at 75

3 at 65

15 at 68

9 at 70

5

G83

7 at 242

6 at 250

5 at 260

10 at 259

9

J34

12 at 240

10 at 246

16 at 267

16 at 270

15

M90

2 at 108

2 at 110

3 at 128

3 at 130

5

Q70

5 at 160

4 at 170

4 at 175

7 at 180

8

Instructions:

1. Determine the cost of the inventory on December 31, 20Y7, by the first-in, first-out method.

If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. Under FIFO, if a model is in inventory at two different costs, enter the remaining units that were purchased most recently first.

2. Determine the cost of the inventory on December 31, 20Y7, by the last-in, first-out method, following the procedures indicated in (1). Under LIFO, if a model is in inventory at two different costs, enter the remaining units that were purchased earliest first.

3. Determine the cost of the inventory on December 31, 20Y7, by the average cost method.

First-In, First-Out Method Model Quantity Unit Cost Total Cost A10 B15 E60 G83 J34 M90 1001 III Q70 Total Last-In, First-Out Method Model Quantity Unit Cost Total Cost A10 $ B15 E60 G83 134 M90 llllll LIIIII 2000 Q70 Total Average Cost Method Model Quantity Unit Cost Total Cost A10 $ B15 E60 G83 J34 M90 II II Q70 De Total