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Compute ending inventory under FIFO, LIFO and weighted average cost

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Novi Co was formed in December 1, 2006. The following information is available from Novi's inventory record for product x:

Units Unit cost
Jan 1, 2007 1,600 $18.00
beg. inventory

Purchases:

1/5/07 2,600 $20.00
1/25/07 2,400 21.00
2/16/07 1,000 22.00
3/15/07 1,800 23.00

A physical inventory on March 31, 2007 shows 2,400 units on hand.

Instructions:

Prepare a schedule to compute the ending inventory at March 31, 2007 under each method.

A. FIFO
B. LIFO
C. Weighted average

Show supporting computations in good form

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Solution Summary

The solution computes the ending inventory under FIFO, LIFO and WAC for Novi Co.

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