Share
Explore BrainMass

# Inventory Method Calculations

See attached file for better format.

Complete parts a, b, c, and d on a separate Excel spreadsheet as directed on the Problem Set 2 directions. Show all your work.
Transactions for the month of June were:
Purchases Sales
1-Jun (balance)800@\$3.20 2-Jun 600@\$5.50
3 2,200@\$3.10 6 1,600@\$5.50
7 1,200@\$3.30 9 1,000@\$5.50
15 1,800@\$3.40 10 400@\$6.00
22 500@\$3.50 18 1,400@\$6.00
25 200@\$6.00

A) Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is
B) Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is
C) Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is
D) Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is

#### Solution Summary

This posting answers the following questions:

A) Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is:
B) Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is:
C) Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is:
D) Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is:

\$2.19