Information about Vinzant Company’s inventory of one item follows. Explanation Number of Units Unit Cost Beginning...

Information about Vinzant Company’s inventory of one item follows.

Explanation	Number of Units		Unit Cost
Beginning inventory, January 1		115		$	365
Purchases:
April		135			370
August		145			375
October		120			377
Ending inventory, December 31		115

Questions:

Compute the cost of the ending inventory under the average cost method.
Compute the cost of the ending inventory under the FIFO method.
Compute the cost of the ending inventory under the LIFO method.

Answer each of the 3 questions by entering your answers in the tabs below.

Compute the cost of the ending inventory under the average cost method. (Round your "average cost per unit" answer to 2 decimal places.)

Average Cost	Merchandise available for sale			Ending Inventory
Average Cost	Number of units	Unit cost	Total cost	Number of units	Average cost per unit	Total cost
Beginning inventory			$0
Purchases:
April			0
August			0
October			0
Total	0		$0			$0

Expert Solution

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Explanation	Number of Units			Unit Cost
Beginning inventory, January 1		115			$	365
Purchases:
April		135				370
August		145				375
October		120				377
Ending inventory, December 31		115

Compute the cost of the ending inventory under the FIFO method.

Under FIFO goods purchased first will be sol first. So The closing inventory will consist of the stock purchased in last.
So Ending inventory, December 31 is 115 units @ $377
115*377	$	43,355.00

Compute the cost of the ending inventory under the LIFO method.
Under LIFO goods purchased last will be sold first. So The closing inventory will consist of the stock purchased in beginning.
So Ending inventory, December 31 is 115 units @ $365
115*365	$	41,975.00

Weighted Average Cost
Average Cost	Merchandise available for sale			Ending Inventory
Average Cost	Number of units (A)	Unit cost (B)	Total cost (C=A*B)	Number of units	Average cost per unit	Total cost
Beginning inventory	115	365	$41,975
Purchases:
April	135	370	$49,950
August	145	375	$54,375
October	120	377	$45,240
Total	515	$371.92	$191,540	115	$371.92	$42,771
Unit cost= Total Cost/Number of units
Unit cost= 191,540/515
Unit cost= $ 371.92
So Ending inventory, December 31 is 115 units @ $371.92
115*371.92	$	42,771.00

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