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    Calculate inventory using FIFO, LIFO and weighted average

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    Please help me understand how the Inventory methods are calculated:
    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.

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    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

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