Answer:
Instructions are below.
Explanation:
Giving the following information:
January 1 Beginning Inventory 10 units at $18 each
April 3 Purchase 30 units at $20 each
August 31 Purchase 28 units at $25 each
September 29 Purchase 17 units at $30 each
Ending Inventory= 21 units
First, we need to calculate the ending inventory using the FIFO (first-in, first-out) method.
The ending inventory is calculated using the cost of the last units incorporated into inventory.
Ending inventory= 17*30 + 4*25= $610
Now, we need to calculate the ending inventory using the LIFO (last-in, first-out) method.
The ending inventory is calculated using the cost of the firsts units incorporated into inventory.
Ending inventory= 10*18 + 11*20= $400
Finally, we need to calculate the ending inventory using the weighted-average inventory method.
average cost= (18 + 20 + 25 + 30)/4= $23.25
Ending inventory= 21*23.25= $488.25
