1. Alternative Inventory Methods-Comprehensive Belanna Corporation began operations on December 1, 2010. The only inventory transaction in 2010 was the purchase of inventory on December 10, 2010, at a cost of $20 per unit. None of this inventory was sold in 2010. Relevant information is as follows.
Ending inventory units
December 31, 2010 100
December 31, 2011, by purchase date
December 2, 2011 100
July 20, 2011 30 130
During the year the following purchases and sales were made. The company uses the periodic inventory method.
(a) Determine ending inventory under
(1) Specific identification,
(2) FIFO,
(3) LIFO, and
(4) Average cost.
(b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2011, purchase cost is the current cost of inventory.
.PNG)