Answer:
ending inventory using LIFO = $1,150
ending inventory using FIFO = $1,375
ending inventory using average cost = $1,262.50
Explanation:
units purchased unit price total
Beginning inventory 10 units $55 $550
First purchase 25 units $60 $1,500
Second purchase 30 units $65 $1,950
Third purchase 15 units $70 $1,050
total 80 units $63.125 $5,050
If 60 units were sold during the year:
ending inventory using LIFO = (10 x $55) + (10 x $60) = $1,150
ending inventory using FIFO = (15 x $70) + (5 x $65) = $1,375
ending inventory using average cost = 20 x $63.125 = $1,262.50