Response to the following problem:
American Depress Limited made the following purchases and sales of Products A, B and C during the year ended December 31, 2016:
Product A
|
|
|
Units
|
Unit cost/ selling price
|
|
Jan. 07
|
Purchase #1
|
8,000
|
$12.61
|
|
Mar. 15
|
Sale #1
|
9,000
|
16.00
|
|
Aug. 17
|
Purchase #2
|
12,000
|
12.84
|
|
Oct. 29
|
Sale #2
|
14,000
|
17.00
|
Product B
|
|
|
Units
|
Unit cost/ selling price
|
|
Jan. 12
|
Purchase #1
|
5,000
|
$9.68
|
|
May S
|
Sale #1
|
1,000
|
20.00
|
|
Oct. 23
|
Purchase #2
|
7,000
|
10.06
|
|
Dec. 27
|
Sale #2
|
8,000
|
21.00
|
Product C
|
|
|
Units
|
Unit Cost/ Selling Price
|
|
Jan. 4
|
Purchase #1
|
11,000
|
$14.65
|
|
July 7
|
Purchase #2
|
15,000
|
13.26
|
|
Aug. 4
|
Sale #1
|
20,000
|
25.00
|
|
Oct. 5
|
Sale #2
|
5,000
|
26.00
|
Opening inventory at January 1 amounted to 4,000 units at $11.90 per unit for Product A, 5,000 units at $9.54 per unit for Product B, and 6,000 units at $14.71 per unit for Product C.
Required:
1. Prepare inventory record cards for Products A, B, and C for the year using the FIFO inventory cost flow assumption.
2. Calculate total cost of ending inventory at December 31, 2016.
3. Assume now that American Depress keeps over 1,000 types of inventory on hand. Why might staff prefer to use computerized accounting software if a perpetual inventory system is used?