Computations involving different cost-flow assumptions

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Exercise

Computations Involving Different Cost-Flow Assumptions

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

 

Quantity

Cost per Unit

Total Cost

1/2 Purchased

1,200 pounds

$2.20

$2,640

1/8 Purchased

2,200 pounds

2.25

4,950

1/15 Purchased

2,800 pounds

2.28

6,384

1/23 Purchased

1,500 pounds

2.3

3,450

1/28 Purchased

3,000 pounds

2.32

6,960

Total Goods Available for Use

10,700 pounds

 

$24,384


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:

a. FIFO.

b. Weighted average.

c. LIFO.

For weighted average: In your computations, round the per unit cost to four decimal places. For all methods, round your final answers to the nearest dollar.

 

FIFO

Weighted Average

LIFO

Raw Materials Available for Use

$
$ $

Less Ending Inventory

$ $ $

Raw Materials Issued to Production

$ $ $

Reference no: EM13849601

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