Key Accounting Principles Volume 1, 4th Edition - Textbook - page 419

Appendix I Review Exercise Solutions
419
Chapter 8 Appendix Review Exercise—Solutions
a) Specific Identification
Date Purchases Sales Balance
Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit Cost Value
Mar 1 100 $12 $1,200
Mar 3 500 $15 $7,500 100
500
$12
$15
$1,200
$7,500
Mar 12 300 $18 $5,400 100
500
300
$12
$15
$18
$1,200
$7,500
$5,400
Sales for the Month
50
350
100
$12
$15
$18
$600
$5,250
$1,800
50
150
200
$12
$15
$18
$600
$2,250
$3,600
Ending Inventory $6,450
b) FIFO
Date Purchases Sales Balance
Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit Cost Value
Mar 1 100 $12 $1,200
Mar 3 500 $15 $7,500 100
500
$12
$15
$1,200
$7,500
Mar 12 300 $18 $5,400 100
500
300
$12
$15
$18
$1,200
$7,500
$5,400
Sales for the Month
100
400
$12
$15
$1,200
$6,000 100
300
$15
$18
$1,500
$5,400
Ending Inventory $6,900
c) Weighted-Average Cost
Date
Purchases Sales Balance
Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit Cost Value
Mar 1 100 $1,200
Mar 3 500 $15 $7,500 600 $8,700
Mar 12 300 $18 $5,400 900 $14,100
Average Inventory for the Month 900 $15.67 $14,100
Sales for the Month 500 $15.67 $7,835 400 $15.67 $6,265
Ending Inventory $6,265
Note: numbers may vary due to rounding