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

Solution

	FIFO	LIFO	Weighted Average
Ending Inventory	$           585.00	$           450.00	$           541.50

Working

	Units	Cost per unit	value
Beginning Balance	16	$             30.00	$ 480
Purchases
	30	$             35.00	$ 1,050
	45	$             39.00	$ 1,755
	91		$ 3,285

Average Cost of Inventory
Units	(A)	91
Total Cost	(B)	$ 3,285
Average Cost	(C=B/A)	$             36.10

FIFO
Total Units Available for sale		91
Units Sold		76
Closing Stock in Units		15
Valuation
Ending Inventory	15	@	$             39.00	$ 585
Value Of Ending Inventory				$ 585.00

LIFO
Total Units Available for sale		91
Units Sold		76
Closing Stock in Units		15
Valuation
Ending Inventory	15	@	$             30.00	$ 450

Weighted Average method
Total Units Available for sale		91
Units Sold		76
Closing Stock in Units		15
Valuation
Ending Inventory	15	@	$             36.10	$            541.50