3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification
. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase.
In using this method we calculate cost based on the price of the earliest (first) purchased inventory date.
(b) LIFO
Here we calculate cost by using the price of the most recent (last) purchased inventory date. eg for inventory cost calulations for March 9 we use the price value of March 29
(c) weighted average
This meeting uses the average cost of the entire inventory in the month. Calculated by dividing total cost by today inventory.
(d) specific identification.
Here cost are just assigned to each individual item or batch of items in the period.
In order to minimize the difficulty associated with meeting monthly loan payment, the debt service ratio should be : Below 35 %
This Ratio showed that your annual monthly income still able to cover up your loan payments after considering your housing and other expenses for your daily lives
