Answer:
Instructions are below.
Explanation:
Giving the following information:
January 1 Beginning Inventory 29 $79 $2,291
March 28 Purchase 39 $85 3,315
August 22 Purchase 58 $89 5,162
October 14 Purchase 63 $95 5,985
The company sold 63 units on May 1 and 58 units on October 28.
<u>First, we need to calculate the units in ending inventory:</u>
Ending inventory in units= 189 - 121= 68
<u>To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.</u>
Ending inventory= 63*95 + 5*89= $6,430
COGS= 29*79 + 39*85 + 53*89= $10,323
<u>To calculate the ending inventory under the LIFO (last-in, first-out) method, we need to use the cost of the first units incorporated into the inventory</u>
<u></u>
Ending inventory= 29*79 + 39*85= $5,606
COGS= 63*95 + 58*89= $11,147
<u>Finally, to calculate the ending inventory using the weighted-average, we need to calculate the weighted average price:</u>
<u></u>
weighted average price= 16,753/189= $88.64
Ending inventory= 68*88.64= $6,027.52
COGS= 121*88.64= $10,725.44
