Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

4PSA_3

Expert-verified
Financial & Managerial Accounting
Found in: Page 266
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Refer to the information in Problem 5-3A and assume the periodic inventory system is used.

Required

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

Method

Ending Inventory

FIFO

$18,400

LIFO

$18,000

Weighted Average

$17,156

Specific Identification

$18,200

See the step by step solution

Step by Step Solution

Definition of Cost Allocation

The process under which the cost incurred by the business entity is allocated to the objects, process, or product is known as cost allocation.

Determination of Ending Inventory

(a) FIFO

Particular

Units

X

Per unit cost

=

Total cost

Sep 5

400

X

46

=

$18,400

Total

$18,400

(b) LIFO

Particular

Units

X

Per unit cost

=

Total cost

Beginning Inventory

400

X

45

=

$18,000

Total

$18,000

(c) Weighted Average

(d) Specific Identification

Particular

Units

X

Per unit cost

=

Total cost

10 February

100

X

42

=

4,200

21 August

50

X

50

=

2,500

5 September

250

X

46

=

11,500

Total

$18,200

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.