Question

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.)

Answer 1

	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