Answer:
Closing Units = (710 units - 490 units)= 220 units
a) FIFO : closing inventory = $14,040
Mar 18 purchase 20 *$62 =$1,240
Mar 25 purchase 200 *$64 = $12,800
b) LIFO : closing inventory = $12,780
Mar 1 opening = 90 * $52 =$4,680
Mar 18 purchase = 110 * $62 = $6,820
Mar 25 purchase = 20*$64 =1,280
c) Weighted Average Method (WAM) :
WAM= (Opening cost + purchases cost)/(opening units +units purchased)
= ($7,800+$14,250)/(150+250) = $55.125 cost before Mar 9 sale
WAM(after the first sale) = ($4,961.25 +$6,820 + $12,800)/(90+110+200)
= $61.45
Closing Inventory = $61.45*220 =$13,519
d) Specific Identification :Closing Inventory = $13,070
Mar 01 opening = 60 *$52 =$3,120
Mar 5 Purchase = 30*$57 =$1,710
Mar 18 Purchase = 40*$62 =$2,480
Mar 25 Purchase = 90*$64 =$5,760
Explanation:
The Question is incomplete. I have provided the missing part of the question below.
Date Activities Units Acquired at Cost Units Sold at Retail
Mar. 1 Beginning inventory 150 units $52.00/unit
Mar. 5 Purchase 250 units $57.00/unit
Mar. 9 Sales 310 units $87.00/unit
Mar. 18 Purchase 110 units $62.00/unit
Mar. 25 Purchase 200 units $64.00/unit
Mar. 29 Sales 180 units $97.00/unit
Totals 710 units 490 units
