Question

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold consist of 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 110 from the August 21 purchase, and 335 from the September 5 purchase. [9:17 PM] Compute the cost assigned to ending inventory using specific identification. For specific identification, units sold consist of 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 110 from the August 21 purchase, and 335 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Answer 1

Answer:

cost assigned to ending inventory under:

FIFO = $108,530 - $85,045 = $23,485

LIFO = $108,530 - $85,430 = $23,100

weighted average = $108,530 - $85,697 = $22,833

specific identification = $108,530 - $85,245 = $23,285

Explanation:

the inventory records are missing, so I looked for a similar question:

first we should calculate COGS:

under FIFO

March 15 sales = (660 x $60) + (55 x $57) = $42,735

September 10 sales = (275 x $57) + (110 x $45) + (160 x $65) + (185 x $61) = $42,310

total = $85,045

under LIFO

March 15 sales = (110 x $45) + (330 x $57) + (275 x $60) = $40,260

September 10 sales = (570 x $61) + (160 x $65) = $45,170

total = $85,430

under weighted average

March 15 sales = 715 x ($108,530 / 1,830) = $42,404

September 10 sales = 730 x ( / 1,830) = $43,293

total = $85,697

under specific identification

(660 x $60) + (230 x $57) + (110 x $45) + (110 x $65) + (335 x $61) = $85,245