Calculate inventory cost using FIFO, LIFO, average cost
Not what you're looking for?
Problem 1.
Jan 1 Inventory 27 units at $120
Feb 17 Purchase 54 units at $138
July 21 Purchase 63 units at $156
Nov 23 Purchase 36 unit at $165
50 units of the item in the physical inventory at Dec 31. The periodic inventory system should be used to determine the inventory cost by:
1. The first in, first out
2. last in, first out method, and
3 .the average cost method.
Problem 2.
Jan 1 Inventory 42 units at $60
Mar 10 Purchase 58 units at $65
Aug 30 Purchase 20 units at $68
Dec 12 Purchase 30 units at $70
There are 36 units of the item in the physical inventory at Dec 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods, presenting your answers in the following form:
Merch inventory Merch Sold
a. first in, first out $ $
b. last in, first out $ $
c. Average cost $ $
Purchase this Solution
Solution Summary
Your tutorial is attached in Excel and shows you how to compute ending inventory for LIFO, FIFO and average cost methods. On the second problem, the cost of goods sold is also computed for you.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.