How to calculate ending inventory at May 31 using a)FIFO b)average cost c)LIFO?

Question

Naab Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 78 units were sold.Date Explanation Units Unit Cost Total CostMay 1 Inventory 30 $9 $270 May 15 Purchase 25 10 250 May 24 Purchase 40 11 440Total 95 $960Calculate the ending inventory at May 31 using the (a) FIFO, (b) average-cost, and (c) LIFO methods. (Round all answers to 0 decimal places, e.g. 2,555. For average cost computations round the per unit cost to 3 decimal places, e.g. 2.550.)

Francesco Paucek · Accepted Answer

Well for FIFO the answer i think is 187 17 of the 40 units that remain of the may 24 purchases are multiplied with 11(cost per unit) = 187For LIFO the answer is 153 The purchases made on 15th and 24th are sold off but 17 units of the opening inventory which are remaining are mulitplied with 9 (cost per unit) = 153For average cost it is i think 170 although the exact answer is 171.789Average Cost = 960/95 = 10.10Then 10.10 x 17 units = 170 (after rounding off)(assuming those 78 units are sold after may 24)

Dr. Nina Hettinger I

How to calculate ending inventory at May 31 using a)FIFO b)average cost c)LIFO?

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