Valix Finacc vol 1 Problem 7-26

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-26

                                                                                Units      Average unit cost      Total cost                                                                                                                                                                                  

                                         

1. Inventory – December 31, 2007                                                               

            2007 layer                                                     11,000                  138               1,518,000

2. Inventory – December 31, 2006                           14,000                                      1,480,000

    Purchases – 2007                                                  12,000                  138               1,656,000

    Materials available                                              26,000                                      3,136,000

    Less: Inventory – December 31, 2007                   11,000                                      1,518,000

    Raw materials used – 2007                                  15,000                                      1,168,000

3. Inventory – December 31, 2008

            2008 layer                                                     15,000                  153               2,295,000

4. Inventory – December 31, 2007                           11,000                                      1,518,000

    Purchases – 2008                                                  20,000                  153               3,060,000

    Materials available                                              31,000                                      4,578,000

    Less: Inventory – December 31, 2008                   15,000                                      2,295,000

    Raw materials used – 2008                                  16,000                                      2,283,000