Chapter 20 Accounting for Inventory • 81
Name Date Class
20-R RECYCLING PROBLEM (LO2, 3, 4)
Determining the cost of inventory using the FIFO, LIFO, and weighted-average inventory
costing methods
1.
STOCK RECORD
Description Ceiling Fan Stock No. K45-3SPD
Reorder 25 Minimum 30 Location Aisle 33A
1 2 3 4 5 6 7
INCREASES DECREASES BALANCE
DATE PURCHASE
INVOICE NO. QUANTITY DATE SALES
INVOICE NO. QUANTITY QUANTITY
Jan. 1 30 30
Jan. 6 232 25 55
Apr. 5 315 40 15
82 • Recycling Problem Working Papers
2. FIFO Method
LIFO Method
Weighted-Average Method
Purchase Dates
Units
Purchased Unit Cost Total Cost
FIFO Units
on Hand FIFO Cost
January 1, beginning inventory 30 $44.75 $ 1,342.50
January 6, purchases
April 14, purchases
Purchase Dates
Units
Purchased Unit Cost Total Cost
LIFO Units
on Hand LIFO Cost
January 1, beginning inventory 30 $44.75 $ 1,342.50
January 6, purchases
April 14, purchases
Purchases Total
Cost
Date Units Unit Cost
January 1, beginning inventory 30 $44.75
January 6, purchases
April 14, purchases
20-R RECYCLING PROBLEM (continued)
TE
Total of Beginning ÷Total Units =Weighted-Average
Inventory and Purchases Cost per Unit
$5,928.75 ÷ 130 = $45.6058
25 45.00 1,125.00
25 45.60 1,140.00
30 $1,342.50
25 45.00 1,125.00 20 900.00
25 45.60 1,140.00
$1,342.50
25 45.00 1,125.00
25 45.60 1,140.00
Chapter 20 Accounting for Inventory • 83
Name Date Class
20-R RECYCLING PROBLEM (concluded)
3.
FIFO LIFO
Weighted-
Average
Merchandise Available for Sale
$5,928.75 $5,928.75 $5,928.75
