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Compute inventory cost and ending inventory for ABC and Englehart Co: 3 methods

The assignments cover the cost assumption flow methods. The Demonstration Problem is attached that illustrates the three inventory cost assumption methods when using a periodic inventory system.

The beginning inventory and purchases for ABC Company item for the period were as follows:

Beginning inventory 6 units at $73 each
First purchase 10 units at $72 each
Second purchase 18 units at $74 each
Third purchase 10 units at $75 each

ABC Company uses the periodic system. A physical inventory account determines that there are 15 units in the inventory at the end of the period. What is the cost of the ending inventory when using each of the following methods

(a) first-in, first-out
(b) last-in, first-out
(c) average cost

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The assignments cover the cost assumption flow methods. The Demonstration Problem is attached that illustrates the three inventory cost assumption methods when using a periodic inventory system.

The beginning inventory and purchases for ABC Company item for the period were as follows:

Beginning inventory 6 units at $73 each
First purchase 10 units at $72 each
Second purchase 18 units at $74 ...

Solution Summary

The solution shows the calculations to understand the how to compute the cost of inventory and ending inventory amounts under FIFO, LIFO and average cost.

$2.19