Question

Bailey Company uses a periodic inventory system and its inventory records contain the following information:

	Units	Total Cost
Beginning Inventory:	300	$780
Purchased on May 10	400	1,170
Purchased on June 15	500	1,260
Purchased on August 28	300	990
	1,500	$4,200

The company sold 1,000 units during June. There were no additional purchases or sales during the remainder of the year. The company had 500 units were in its ending inventory at the end of the year.

9.

Required information

Use the information above to answer the following question. If Bailey Company uses the FIFO costing method, what is the cost of its ending inventory?

$2,580

$1,494

$2,290

$2,706

10.

Required information

Use the information above to answer the following question. If Bailey Company uses the LIFO costing method, what is the cost of its ending inventory?

$1,365

$1,494

$2,835

$1,620

11.

Required information

Use the information above to answer the following question. If Bailey Company uses the weighted average inventory costing method, what is the cost of its ending inventory? (Round the per unit cost to two decimalplaces and then round your answer to the nearest whole dollar.)

$2,700

$1,400

$1,365

$4,200

Answer 1