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# Calculate inventory using FIFO, LIFO and weighted average

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Inventory methods

George Company was formed on December 1, 2006. The following information is available from George 's inventory record for Product A.
Units Unit Cost
January 1, 2007 (beginning inventory) 1,600 \$18.00
Purchases:
January 5, 2007 2,600 \$20.00
January 25, 2007 2,400 \$21.00
February 16, 2007 1,000 \$22.00
March 15, 2007 1,800 \$23.00

A physical inventory on March 31, 2007, shows 2,500 units on hand.

Instructions

Prepare schedules to compute the ending inventory at March 31, 2007, under each of the following inventory methods:
(a) FIFO.
(b) LIFO.
(c) Weighted-average.

#### Solution Preview

Inventory methods
George Company was formed on December 1, 2006. The following information is available from George 's inventory record for Product A.
Units Unit Cost
January 1, 2007 (beginning inventory) 1,600 \$18.00
Purchases:
January 5, 2007 2,600 \$20.00
January 25, 2007 2,400 \$21.00
February 16, 2007 1,000 \$22.00
March 15, 2007 1,800 \$23.00

A physical inventory on March 31, 2007, shows 2,500 units on hand.
Instructions
Prepare schedules to compute the ending inventory at ...

#### Solution Summary

The solution explains the calculation of inventory using FIFO, LIFO and weighted average methods

\$2.19