Question

Using Weighted Average, FIFO and LIFO inventory cost flow
methods calculate inventory. Be sure to show all work!!!
Beginning Inventory			600 units @$6
February purchase			400 units @$7
April Purchase			700 units @$8
June purchase			300 units @$9
sold 500 units
Weighted Average
FIFO
LIFO

Answer 1

• All working forms part of the answer
• Weighted Average = $ 11,025 = Ending Inventory

Weighted Average (Periodic)	Units	Cost per unit	Total
Beginning Inventory	600	$              6.00	$       3,600.00
Purchases:
Feb	400	$              7.00	$       2,800.00
April	700	$              8.00	$       5,600.00
June	300	$              9.00	$       2,700.00
Total Purchases	1400		$     11,100.00
Goods Available for Sales	2000		$     14,700.00
Weighted Average cost per unit		$            7.350
Cost of Goods Sold	500	$            7.350	$       3,675.00
Ending Inventory	1500	$            7.350	$     11,025.00 = Answer

• FIFO = $ 11,700 = Answer

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	600	$                   6.00	$                        3,600.00	500	$                 6.00	$                 3,000.00	100	$                   6.00	$                600.00
Purchases:
Feb	400	$                   7.00	$                        2,800.00	0	$                 7.00	$                              -	400	$                   7.00	$            2,800.00
April	700	$                   8.00	$                        5,600.00	0	$                 8.00	$                              -	700	$                   8.00	$            5,600.00
June	300	$                   9.00	$                        2,700.00	0	$                 9.00	$                              -	300	$                   9.00	$            2,700.00
TOTAL	2000		$                      14,700.00	500		$                 3,000.00	1500		$          11,700.00 = Answer

• LIFO = $ 10,400 = Answer

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	600	$                   6.00	$                        3,600.00	0	$                 6.00	$                              -	600	$                   6.00	$            3,600.00
Purchases:	0	$                       -	$                                     -
Feb	400	$                   7.00	$                        2,800.00	0	$                 7.00	$                              -	400	$                   7.00	$            2,800.00
April	700	$                   8.00	$                        5,600.00	200	$                 8.00	$                 1,600.00	500	$                   8.00	$            4,000.00
June	300	$                   9.00	$                        2,700.00	300	$                 9.00	$                 2,700.00	0	$                   9.00	$                         -
TOTAL	2000		$                      14,700.00	500		$                 4,300.00	1500		$          10,400.00 = Answer