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Coronado Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory...

Coronado Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $460 each. On January 10, Coronado purchased 6 units at $600 each. The company sold 2 units on January 8 and 5 units on January 17.

Compute the ending inventory under LIFO and moving-average cost. (Round answer to 0 decimal places, e.g. 1,250.)

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Answer #1

LIFO Method - Perpetual Inventory.

>> Ending Inventory sets = 3 + 6 - 2 - 5

>> Ending Inventory sets = 2 Sets.

>> Ending Inventory value = ( 1 * $ 460 ) + ( 1 * $ 600 )

>> Ending Inventory value = $ 1,060.

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Moving Average cost Method.

>> Average cost = [ ( 1 * $ 460) + ( 6 * $ 600 ) ] / 7

>> Average cost = $ 580.

>> Ending Inventory value = ( 2 * $ 580 )

>> Ending Inventory value = $ 1,160.

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