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Determining Inventory Costs The following items were purchased by Kudos Leather Goods
Chapter 25, Problem 25-2(choose chapter or problem)
Determining Inventory Costs
The following items were purchased by Kudos Leather Goods during the month of April:
April 2 34 wallets @ $12.95 each
April 8 24 wallets @ $13.10 each
April 18 15 wallets @ $13.25 each
April 26 20 wallets @ $13.27 each
On April 1 the business had in inventory 19 wallets valued at $12.90 each. On April 30 the business had 36 wallets in inventory; of these wallets, 8 were purchased on April 2, 15 were purchased on April 8, 3 were purchased on April 18, and 10 were purchased on April 26.
Instructions In your working papers, calculate the cost of the ending inventory using:
a. the specific identification method
b. the FIFO method
c. the LIFO method
d. the weighted average method
Questions & Answers
QUESTION:
Determining Inventory Costs
The following items were purchased by Kudos Leather Goods during the month of April:
April 2 34 wallets @ $12.95 each
April 8 24 wallets @ $13.10 each
April 18 15 wallets @ $13.25 each
April 26 20 wallets @ $13.27 each
On April 1 the business had in inventory 19 wallets valued at $12.90 each. On April 30 the business had 36 wallets in inventory; of these wallets, 8 were purchased on April 2, 15 were purchased on April 8, 3 were purchased on April 18, and 10 were purchased on April 26.
Instructions In your working papers, calculate the cost of the ending inventory using:
a. the specific identification method
b. the FIFO method
c. the LIFO method
d. the weighted average method
ANSWER:Step 1 of 2
Inventory is a current asset of a company that is recorded in the balance sheet at its ending value. There are four inventory valuation method that helps in terming that ending balance of inventory. A single inventory valuation method is practiced by a company through-out a year.