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Accounting: LIFO,FIFO and Economic Order Quantity

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A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the value of the ending inventory using LIFO? Note: LIFO, last-in, first-out represents that the last produced will be the first shipped. (Show your work/calculations/formulas)

Jerry's Retail expects total sales of 2,000 units. The firm estimates an ordering cost of $7.50 per order, with an inventory cost of $0.70 per unit. What is the economic ordering quantity? (Show your work/calculations/formulas- round to the nearest whole number).

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Solution Summary

The problem set deal with determining the economic order quantity, closing inventory under LIFO (Last In, FIrst Out) and FIFO (First In, First Out). The solution is presented in a Word document that contains clearly listed formulas and explanations for all the workings.

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Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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