Practice Problem

Arnold Company's raw material purchases during January, its first month of operations, were as follows:

Quantity Cost per unit Total Costs

1/2 1,200 pounds 2.20 2,640

1/8 2,200 pounds 2.25 4950

1/15 2,800 pounds 2.28 6384

1/23 1,500 pounds 2.30 3450

1/28 3,000 pounds 2.32 6960

Total Goods Available 10,700 pounds 24384

The inventory on January 31 was 3,500 pounds. Compute the cost of the inventory on January 31 and the cost of raw materials issued to production for January under each of the following cost-flow assumptions:

FIFO Weighted Average LIFO

Raw Materials Available for Use

Less Ending Inventory

Raw Materials Issued to Production