Problem:
Amos Corp. began operations on Dec 1, 2006. the only inventory transaction in 2006 was the purchase of inventory on Dec 10, 2006, at cost of $20 per unit. None of this inventory was sold in 2006. Relevant information is as follows.
Ending inventory units
Dec 31, 2006 100
Dec 31, 2007, by purchase date
Dec 2, 2007 100
July 20, 2007 50 150
During the year the follwing purchases and sales were made.
Purchases Sales
March 15 300 units at $24 April 10 200
July 20 300 units at 25 Aug 20 300
Sept 4 200 units at 28 Nov 18 150
Dec 2 100 units at 30 Dec 12 200
The company uses the periodic inventory method.
Q1. Determine ending inventory under (1) specific identification, (2) FIFO (3) LIFO and (4) avg. cost
Q2. Determine ending inventory using dollar-value LIFO. Assume that the December 2,2007, purchase cost is the current cost of inventory. (hint beginning inventory is the base layer priced at @$20 per unit)