Answer:
a. The value of ending Inventory using FIFO is $2749.
b. The value of ending Inventory using LIFO is $2667.
c. The value of ending Inventory using Average Cost method is $2713.
We have:
Date Explanation Units unit cost Total Cost
Sep-01 inv 11 97 1067
Sep-12 purchases 44 100 4400
Sep-19 purchases 47 101 4747
Sep-26 purchases 22 102 2244
Total 124 12458
Novak sold 97 snowboards, so the number of snowboards with it at the end of September is
.
If Novak adopts First In First Out (FIFO) method, and 27 units are remaining, all 22 units purchased on Sept-26th and
from the purchases made on Sept-19th will remain in inventory.
So the value of inventory using FIFO will be
If Novak adopts Last In First Out (LIFO) method, all 11 units in inventory on Sept-01st and
from the purchases made on Sept-12th will remain in inventory.
Hence inventory value using LIFO will be
We calculate the Average cost by dividing the Total Cost by total number of units purchased.
![Average Cost = \frac{12458}{124} = 100.468](https://tex.z-dn.net/?f=Average%20Cost%20%3D%20%5Cfrac%7B12458%7D%7B124%7D%20%3D%20100.468)
The value of inventory using the average cost method is
.