Compute the cost of the inventory on January

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Reference no: EM132746019

Question - Computations involving different cost-flow assumptions

Arnold Company's raw material purchases during January, its first month of operations, were as follows:

 

 

Quantity

Cost per Unit

Total Cost

1/2

Purchased

1,200 pounds

$2.20

$2,640

1/8

Purchased

2,200 pounds

2.25

4,950

1/15

Purchased

2,800 pounds

2.28

6,384

1/23

Purchased

1,500 pounds

2.30

3,450

1/28

Purchased

3,000 pounds

2.32

6,960

Total Goods Available for Use 10,700 pounds $24,384

The inventory on January 31 was 3,500 pounds. Compute the cost of the inventory on January 31 and the cost of raw materials issued to production for January under each of the following cost-flow assumptions:

a. FIFO.

b. Weighted average.

c. LIFO.

Reference no: EM132746019

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