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

Mar. 1 Inventory 22 units $29
June 16 Purchase 31units $20
Nov. 28 Purchase 46 units $39

There are 14 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost in (a) FIFO, (b) LIFO, and (c) average cost methods.

Respuesta :

Answer and Explanation:

The computation of the ending inventory by following methods are

a. Under FiFO

= 14 units at $39

= $546

b. Under LIFO

= 14 units at $29

= $406

c, Under average cost method

But before that the average cost per unit should be determined

= (22 units at $29 + 31 units at $20 + 46 units at $39) ÷ (22 units + 31 units + 46 units)

= ($638 + $620 + $1,794) ÷ (99 units)

= $30.83

Now the ending inventory is

= $30.83 × 14 units

= $431.62

= $432

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