Question

The units of Manganese Plus available for sale during the year were as follows:

Mar. 1	Inventory	16 units	@ $30	$ 480
June 16	Purchase	30 units	@ $35	1,050
Nov. 28	Purchase	45 units	@ $39	1,755
		91 units		$3,285

There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used.

a. Determine the inventory cost by the FIFO method.
$

b. Determine the inventory cost by the LIFO method.
$

c. Determine the inventory cost by the average cost methods. Round interim calculations and final answer to two decimal places.
$

Answer 1

• Ending Inventory:
  [a] FIFO = $ 585
  [b] LIFO = $ 450
  [c] Average cost = $ 541.50
• Workings

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	16	$                30.00	$                            480.00	16	$               30.00	$                     480.00	0	$                 30.00	$                         -
Purchases:
16 June	30	$                35.00	$                        1,050.00	30	$               35.00	$                 1,050.00	0	$                 35.00	$                         -
28 Nov	45	$                39.00	$                        1,755.00	30	$               39.00	$                 1,170.00	15	$                 39.00	$                585.00
TOTAL	91		$                        3,285.00	76		$                 2,700.00	15		$                585.00
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	16	$               30.00	$                            480.00	1	$               30.00	$                       30.00	15	$                 30.00	$                450.00
Purchases:	0	$                       -	$                                     -
16 June	30	$                35.00	$                        1,050.00	30	$               35.00	$                 1,050.00	0	$                 35.00	$                         -
28 Nov	45	$                39.00	$                        1,755.00	45	$               39.00	$                 1,755.00	0	$                 39.00	$                         -
TOTAL	91		$                        3,285.00	76		$                 2,835.00	15		$                450.00
Average Method	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	16	$                30.00	$                            480.00
Purchases:	0	$                       -	$                                     -
16 June	30	$                35.00	$                        1,050.00
28 Nov	45	$                39.00	$                        1,755.00
TOTAL	91	$              36.099	$                        3,285.00	76	$          36.1000	$                 2,743.60	15	$            36.1000	$                541.50