Case study no. 1: At the beginning of January N entity A has an initial flour inventory of 200 kg evaluated at an actual cost of 46 lei/kg. The following transactions happen during the month with regard to the flour inventory: 07.01 N: acquisition 500 kg, actual cost 47 lei/kg; 09.01. N: acquisition 300 kg, actual cost 49 lei/kg, 12.01. N: consumption 600 kg. 17.01. N: consumption 100 kg. - 20.01. N: acquisition 200 kg, actual cost 55 lei/kg; 24.01. N: consumption 400 kg, [ 4 27.01. N: acquisition 700 kg, actual cost 57 lei/kg; 30.01. N: consumption 750 kg. a. Establish the value of each flour consumption taking place during the month, the value of the monthly flour consumption and the value of the closing flour inventory by applying the FIFO formula in the month of January. Entries Exits Inventory No. Date Quantity Cost Value Quantity Cost Quantity per unit 0 5 6 8 1. 01.01.N Initial inventory 07.01.N 09.01.N 12.01N 17.01.N 24.01.N 27.01.N 9. 30.01.N 31.01.N Total The value of monthly flour consumption is: The value of the closing flour inventory: 47 6. 20 Value 9
Case study no. 1: At the beginning of January N entity A has an initial flour inventory of 200 kg evaluated at an actual cost of 46 lei/kg. The following transactions happen during the month with regard to the flour inventory: 07.01 N: acquisition 500 kg, actual cost 47 lei/kg; 09.01. N: acquisition 300 kg, actual cost 49 lei/kg, 12.01. N: consumption 600 kg. 17.01. N: consumption 100 kg. - 20.01. N: acquisition 200 kg, actual cost 55 lei/kg; 24.01. N: consumption 400 kg, [ 4 27.01. N: acquisition 700 kg, actual cost 57 lei/kg; 30.01. N: consumption 750 kg. a. Establish the value of each flour consumption taking place during the month, the value of the monthly flour consumption and the value of the closing flour inventory by applying the FIFO formula in the month of January. Entries Exits Inventory No. Date Quantity Cost Value Quantity Cost Quantity per unit 0 5 6 8 1. 01.01.N Initial inventory 07.01.N 09.01.N 12.01N 17.01.N 24.01.N 27.01.N 9. 30.01.N 31.01.N Total The value of monthly flour consumption is: The value of the closing flour inventory: 47 6. 20 Value 9
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...
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