Question

Larkspur, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 80 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 34 $9 $306 15 Purchase 26 10 260 24 Purchase 40 11 440 Total 100 $1,006 Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $Enter the Weighted-average unit cost in dollars eTextbook and Media Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount

Answer 1

Answer:

The average cost will be "$201". The further explanation is given below.

Explanation:

At May 31,                              FIFO               LIFO                Average cost

The ending inventory             $220               $180                    $201

Going to end Inventory Computation together under Quarterly inventory management system will be:  

At $11 = $220

• FIFO = 20 Units

At $9 = $180

• LIFO = 20 Units

• Average Cost = 20 Units  

$10.06 = $201.2 i.e $201.