Purchase Solution

Inventory Methods: FIFO, LIFO, Average Cost

Not what you're looking for?

Ask Custom Question

Express Lane, a regional convenience store chain, maintains milk inventory by the gallon. The first month's milk purchases and sales at its Freeport, FL, location follows:
Nov 2 1 gallon @ $2.00 each
6 2 gallons @ $2.10 each
13 2 gallons @ $2.20 each
14 The store sold 4 gallons of milk to a customer.

1.Describe which costs would be sold and which costs would remain in inventory. Then, identify the amount that would be reported in inventory on November 15 using:
a. FIFO.
b. LIFO.
c.average cost.

Purchase this Solution
Solution Summary

In this solution we apply three inventory methods to a problem.

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

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.

View More Free Quizzes
Related BrainMass Solutions

  • FIFO, LIFO, and Average-Cost Inventory Methods

    (b) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

  • Cost Flow Methods: FIFO and LIFO

    Ending Inventory FIFO = $26,886 LIFO (1,500 x 7) + (1,500 x 8) = $22,500 Average cost 3,000 x 8.961 = $26,883 Cost of Goods Sold Cost of goods available for sale - ending inventory = cost of goods sold FIFO = $89,614 LIFO 116,500 - 22,500

  • Calculation of the ending inventory

    The solution includes a word document and an excel sheet that show the calculation of ending inventory under different inventory costing methods: LIFO, FIFO, and Weighted Average Methods

  • LIFO, FIFO, Average cost; Perioidic and Perpetual Methods

    using weighted average cost is $480 LIFO, FIFO, Average cost; Perioidic and Perpetual Methods are examined.

  • Inventory Cost Flow Methods

    507877 Inventory Cost Flow Methods Accounting - Cost Flow Methods Which of the following three cost flow methods (FIFO, LIFO, Average) results in (1) the highest ending inventory amount for the balance sheet and (2) the highest cost of goods

  • GAAP

    These methods are used in accounting to get a correct value of the assets. The different methods of valuing inventories are LIFO, FIFO and average cost method.

  • Valuation of Inventory and Cost of Goods Sold

    (b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

  • Inventory - FIFO, LIFO, Average for Eddings Company

    Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). (Round the unit cost in the average cost method to 2 decimal places.

  • LIFO, FIFO, and Average Cost Methods of the Vita-Rite Company

    Calculate the cost of ending inventory using the LIFO, FIFO, and average cost methods. ** See ATTACHED file for complete details!!

  • Examples of Inventory Control Methods

    391495 Examples of Inventory Control Methods Calculate ending inventory, cost of goods, gross profit, and gross profit rate under each of the following methods LIFO, FIFO, and Average cost.

View More Related Solutions