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A company purchased 400 units for $50 each on January 31. It purchased 200 units for...

A company purchased 400 units for $50 each on January 31. It purchased 200 units for $25 each on Feb 28. It sold a total of 200 units for $60 each from March 1 through December 31. If the company uses the weighted - average inventory costing​ method, calculate the cost of ending inventory on December 31.​ (Assume that the company uses a perpetual inventory system. Round any intermediate calculations two decimal places and your final answer to the nearest dollar).

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Expert Solution

Solution:

Computation of closing inventory as per LIFO method

Date Purchase Sales Closing balance
unit Price total unit price Total unit price total
January. 31 400 50 20000
February. 28 200 25 10000
Till Dec 31 200 60 12000 400 50 20000

ekkarill92 answered 2 years ago
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