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Ending inventory

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See attached file.

Problem:

Tori Amos Corporation began operations on December 1, 2006. The only inventory transactions in 2006 was the purchase of inventory on December 10, 2006 at a cost of $20 per unit. None of this inventory was sold in 2006. Relevant information is as follows.

Ending inventory units
December 31, 2006 100
December 31, 2007, by purchase date
December 2, 2007 100
July 20, 2007 50 150

During the year the following purchases and sales were made.

Purchases
March 15 300 units at $24
July 20 300 units at 25
September 4 200 unites at 28
December 2 100 units at 30

Sales
April 10 200
August 20 300
November 18 150
Demember 12 200

The company uses the periodic inventory method.

Instruction:

(a) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO and (4) average cost.
(b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2007, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $20 per unit.)

Attached is the excel worksheet that these need to be answered on.

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Solution Summary

The solution explains the calculation of ending inventory using specific ID, FIFO, LIFO, average cost and Dollar-Value LIFO

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