Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply: Units Unit Cost January 1, 2019 (beginning inventory) 800 $12.00 Purchases: January 6, 2019 1,500 13.00 January 25, 2019 1,200 13.50 February 17, 2019 600 14.00 March 27, 2019 900 14.50 A physical inventory on March 31, 2019, shows 1,600 units on hand. Required: Prepare schedules to compute the ending inventory at March 31, 2019, under each of the following inventory methods. 1. FIFO FRATE COMPANY Computation of Inventory Under FIFO Inventory Method March 31, 2019 Units Unit cost Total cost March 27, 2019 $ $ February 17, 2019 January 25, 2019 (portion) March 31, 2019 inventory $ 2. LIFO FRATE COMPANY Computation of Inventory Under LIFO Inventory Method March 31, 2019 Units Unit cost Total cost Beginning inventory $ $ January 6, 2019 (portion) March 31, 2019 inventory $ 3. Weighted average FRATE COMPANY Computation of Inventory Under Weighted Average Inventory Method March 31, 2019 Units Unit cost Total cost Beginning inventory $ $ January 6, 2019 January 25, 2019 February 17, 2019 March 27, 2019 Total $ Weighted average cost $ March 31, 2019 inventory $ $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Alternative Inventory Methods

Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

	Units	Unit Cost

January 1, 2019 (beginning inventory)	800	$12.00
Purchases:
January 6, 2019	1,500	13.00
January 25, 2019	1,200	13.50
February 17, 2019	600	14.00
March 27, 2019	900	14.50

A physical inventory on March 31, 2019, shows 1,600 units on hand.

Required:

Prepare schedules to compute the ending inventory at March 31, 2019, under each of the following inventory methods.

1. FIFO

FRATE COMPANY
Computation of Inventory Under FIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
March 27, 2019		$	$
February 17, 2019
January 25, 2019 (portion)
March 31, 2019 inventory			$

2. LIFO

FRATE COMPANY
Computation of Inventory Under LIFO Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2019 (portion)
March 31, 2019 inventory			$

3. Weighted average

FRATE COMPANY
Computation of Inventory Under Weighted Average Inventory Method
March 31, 2019
	Units	Unit cost	Total cost
Beginning inventory		$	$
January 6, 2019
January 25, 2019
February 17, 2019
March 27, 2019
Total			$
Weighted average cost		$
March 31, 2019 inventory		$	$

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