SIMULATION 3

Chapter 8

Develop a response in either Word or Excel and follow the instructions outlined in the Assignments Menu for submission.

The following information is available from Jansen's inventory records for Product X:

	Units	Unit Cost
January 1, 2012 ( Beg. Inventory.)	800	$9.00
Purchases:
January 5, 2012	1,300	$10.00
January 25, 2012	1,200	$10.50
February 16, 2012	500	$11.00
March 26, 2012	900	$11.50

A physical inventory on March 31, 2012 shows 1,600 units on hand

REQUIRED:

Compute the ending inventory (assuming periodic system) at March 31, 2012, under each of the following inventory methods:

(a) FIFO

(b) LIFO

Weighted Average

B. Aber Company manufactures one product. On December 31, 2011, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $270,000. Inventory data are as follows:

Inventory at Price index

Year year-end prices (base year 2011)

2012 $378,000 1.05

2013 552,000 1.15

2014 575,000 1.25

REQUIRED:

Compute the inventory at December 31, 2012, 2013, and 2014, using the dollar-value LIFO method for each year.