The following scenario is relevant for Questions 26 to 28: The following data re
ID: 340690 • Letter: T
Question
The following scenario is relevant for Questions 26 to 28: The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Las Lemus, Inc. for an operating period. Unit 32 S 36 28 20 Units Unit Cost Beginning Inventory Sale No. 1 Purchase No. 1 Sale No. 2 Purchase No. 2 Totals Total Cost S1,152 1,120 -760 Sold 10 32 40 38 26. Assuming Las Lemus, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is A) $1,368 B) $1,392 C) $1,444 D) $1,480 27. Assuming Las Lemus, Inc. uses LIFO periodic inventory procedures, the ending inventory cost is: A) $1,326 B) $1,392 C) $1,444 D) $1,480 28. Assuming Las Lemus, Inc. uses weighted-average (periodic) inventory procedures, the ending inventory cost is: A) $1,440.20 B) $1,442.00 C) $1,444.00 D) $1,594.80Explanation / Answer
26. Answer : D $1,480
we sold 42 units
using FIFO, First we select the units from beginning inventory = 32 units x $36 = $1,152
then we pick remaining 10 units from purchase No. 1 = 10 units x $40 = $400
Total Cost of goods sold = $1,152 + $400 = $1,552
Ending Inventory = Total Cost - Cost of goods sold = $3,032 - $1,552 = $1480
27. Answer : B $1,392
Units available for sale = 32 + 28 + 20 = 80 units
Units sold = 10 + 32 = 42 units
Units in ending inventory = 80 - 42 = 38 Units
Ending Inventory
Inventory from purchase No. 1 = 6 units x $40 = $240
Inventory from Beginning Inventory = 32 units x $36 = $1,152
Total ending Inventory = $240 + $1,152 = $1,392
28. Answer : A $1,440.20
Units available for sale = 32 + 28 + 20 = 80 units
Total Cost = $3,032
Weighted-Average cost = Total Cost / Total units available for sale
= $3,032 / 80 units = $37.9
Total Cost of goods sold = 42 units x $37.9 = $1,591.8
Ending Inventory = $3,032 - $1,591.8 =$1,440.2
Units Unit Cost Total sales from purchase No. 2 20 $38 $760 sales from purchase No. 1 22 $40 $880 32 $1,640