Posted by Mary Ann on Saturday, January 22, 2011 at 3:04pm.
I have 2 questions involving inventory
Question 1.
Your a manager of an auto parts store.Figures below contains your records of the annual inventory figures for windshield wipers. Using the FIFO method of inventory pricing,hat is the dollor value of ending inventory if there were 300 units on hand on Dec.31? Round yur aswer to the nearest dollor.
Answers to choose from
A.3,188
B.3,219
c.3,350
d.3,600
January 1 Beginning inventory 300 units @11.00
March 15 Purchase 150 units @ 10.50
June 10 Purchase 200 units @ 10.75
Sept.22 Purchase 175 units @ 10.00
Dec.10 Purchase 100 units @ 12.00
Then the second question wants the dollor value of the ending inventory using the LIFO method,having the ending inventory on Dec 31 of 500 units.
Answers
A.5,450
b.5,413
c.5,363
d.5,225
Could you please help.thankyou

Math  helper, Saturday, January 22, 2011 at 4:14pm
FIFOfirst in, first out
300 @ 11.00
150 @ 10.50
200 @ 10.75
175 @ 10.00
100 @ 12.00
Beginning Inventory Total = 925
Ending Total = 300
Difference = sold = 625
FIFOfirst in, first out
Items sold are assumed to be subtracted from the first ones purchased. Go down from the top and subtract from each purchase until you reach the number sold of 625.
300 @ 11.00sold 300, 0 left
150 @ 10.50sold 150, 0 left
200 @ 10.75sold 175, 25 left
175 @ 10.00sold 0, 175 left
100 @ 12.00sold 0, 100 left
Calculate value of inventory remaining
25 @ 10.75 = $268.75
175 @ 10.00 = $1750.00
100 @ 12.00 = $1200.00
Total 300 units
268.75 + 1750.00 + 1200.00 = 3218.75
Value of 300 units on hand on Dec.31 = $3219.
Now, you do LIFOlast in, first out
Do the same as I did, except start subtracting from the last purchased until you reach the total sold (bottom to top).

Math  Mary Ann, Sunday, January 23, 2011 at 2:44pm
Thankyou for your help,my computer went down yesterday after I put my question in.
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