Franklin Co. had 10 units of an inventory item on hand at the beginning of the...

Franklin Co. had 10 units of an inventory item on hand at the beginning of the current year, each of which had a per-unit cost of $10. During the year, 20 additional units were purchased at $11, and 25 units were sold. What is the amount of the ending inventory under the LIFO and the average-cost methods of accounting for inventory? (Round your intermediate calculations and final answers to 2 decimal places.)

Expert Solution

	Units	Cost per unit	value
Beginning Balance	10	$ 10.00	$ 100.00
Purchases
	20	$ 11.00	$ 220.00
	30		$ 320.000

Average Cost of Inventory

Units	(A)	30
Total Cost	(B)	$ 320.00
Average Cost	(C=B/A)	$ 10.67

LIFO
Total Units Available for sale		30
Units Sold		25
Closing Stock in Units		5

Valuation
Ending Inventory	5	@	$ 10.00	$ 50.00


Value Of Ending Inventory				$ 50.00

Weighted Average method
Total Units Available for sale		30
Units Sold		25
Closing Stock in Units		5

Valuation
Ending Inventory	5	@	$ 10.67	$ 53.35

Value Of Ending Inventory				$ 53.35 or 53.33 if 53.35 do not match

ekkarill92 answered 3 years ago

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