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Calculating the Cost of Ending Inventory Sunset Surfwear sells wet suits. On January 2
Chapter 25, Problem 25-4(choose chapter or problem)
Calculating the Cost of Ending Inventory
Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost of $4,809 in inventory.
| Date | Description | Wet Suits | Cost | Total |
| Jan. 2 | Beginning inventory | 21 | $229 | $ 4,809 |
| Jan. 3 | Purchase | 10 | 235 | 2,350 |
| Mar. 17 | Purchase | 6 | 238 | 1,428 |
| July 27 | Purchase | 12 | 240 | 2,880 |
| Sept. 27 | Purchase | 10 | 241 | 2,410 |
| Nov. 29 | Purchase | 6 | 244 | 1,464 |
| Total | 65 | $15,341 |
At the end of the year, there were 17 wet suits in ending inventory. Of these, 1 was purchased on July 27, 10 were purchased on September 27, and 6 were purchased on November 29.
Instructions Assign a cost to the ending inventory using the following:
a. the specific identification method
b. the FIFO method
c. the LIFO method
d. the weighted average cost method
Questions & Answers
QUESTION:
Calculating the Cost of Ending Inventory
Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost of $4,809 in inventory.
| Date | Description | Wet Suits | Cost | Total |
| Jan. 2 | Beginning inventory | 21 | $229 | $ 4,809 |
| Jan. 3 | Purchase | 10 | 235 | 2,350 |
| Mar. 17 | Purchase | 6 | 238 | 1,428 |
| July 27 | Purchase | 12 | 240 | 2,880 |
| Sept. 27 | Purchase | 10 | 241 | 2,410 |
| Nov. 29 | Purchase | 6 | 244 | 1,464 |
| Total | 65 | $15,341 |
At the end of the year, there were 17 wet suits in ending inventory. Of these, 1 was purchased on July 27, 10 were purchased on September 27, and 6 were purchased on November 29.
Instructions Assign a cost to the ending inventory using the following:
a. the specific identification method
b. the FIFO method
c. the LIFO method
d. the weighted average cost method
ANSWER:Step 1 of 6
The ending inventory can be defined as the goods reported in the company’s hands at the end of the fiscal year. Such inventory includes unsold items. It can be assigned with cost using the various method of inventory valuation.