Answer:
1 & 5) FIFO Ending Inventory $ 10,800
2) moving average: $ 10,400
3) weighted average $ 9,520
4) LIFO $ 8,800
Explanation:
January 1 Beg Inv 90 $40 subtotal: $ 3,600
May 15 Purchase 160 $65 subtotal: $ 10,400
units: 250 total: $ 14,000
April 11 Sale 50 $70
July 25 Sale 30 $75
Total sales 80 units
Ending Inventory: 250 - 80 = 170 units
FIFO the ending inventory is compose of the last nits
As it follows a crhonological order is the same under periodic and perpetual:
We start from the top
May 15th 160 at 65$ $10,400
170 - 160 units = 10 units
January 1 Beg Inv 10 units at $40 = $ 400
Total ending inventory: $ 10,800
Moving average:
the average is calculate based on the aailable good at hand before eahc purchase:
At April 11th the company's available goods are the beginning invenory thus the COGS is
50 units x 40 dollars each = 2,000
Then, at July 25th the inventory available is:
40 units at $40 dollars = 1,600
and 160 units at 65 dollars = 10,400
total 200 units at 12,000
Average: $12,000 / 200 units = $60 per unit
COGS: 30 units x $60 = 1,800
Total cost: 2,000 + 1,600 = 3,600
Ending inventory: 14,000 - 3,600 = 10,400
Weighted average:
we divide total goods available over the total units purchased:
14,000 / 250 = 56 dollar per unit
ending inventory 170 units x 56 per unit = $ 9,520
LIFO:
the last units are sold while the first are ending inventory we start from the top part :
January 1 Beg Inv 90 $40 subtotal: $ 3,600
170 units - 90 units = 80 units
May 15 Purchase 80 $65 subtotal: $ 5,200
Total $ 8,800
