Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Jan. 1: Inventory 40 units at $165
Aug. 13: Purchase 200 units at $180
Nov. 30: Purchase 60 units at $200
Available for sale 300 units
There are 75 Units of the item in the physical inventory on December 31.
1) FIFO (first-in, first-out)
The cost of ending inventory is the cost of the last units bought.
Ending inventory= 60*200 + 15*180= $14,700
2) LIFO (last-in, first-out)
The cost of the ending inventory is the cost of the first units bought.
Ending inventory= 40*165 + 35*180= $12,900
3) Weighted-average:
Weighted average price= (165 + 180 + 200)/3= 181.67
Ending inventory= 181.67*75= $13,625.25
