Question

	Cost
Inventory Method	Merchandise		Merchandise
	Inventory		Sold
FIFO	$7,728		$21,522
LIFO	6,660		22,590
Average cost
Cost of merchandise available for sale:
	42		units at	$180		=	$      7,560
	58		units at	$195		=	11,310
	20		units at	$204		=	4,080
	30		units at			=
	150		units
First-in, first-out:
Merchandise inventory:
	30		units at	$210		=	6,300
	7		units at	$204		=	1,428
	37		units				$      7,728
Merchandise sold							$    21,522
Last-in, first-out
Merchandise inventory:
	37		units at	$180		=	$      6,660
Merchandise sold							$    22,590
Average cost
Average cost =			total cost /	150		total units
=
Merchandise inventory:
			units at			=
Merchandise sold

Answer 1

Closing Inventory
30 units @ $210- FIFO

7 units @ $204

LIFO

37 units @$ 180

PURCHASES

Units	Rate per unit	Amt
42	180	7560
58	195	11310
20	204	4080
30	210	6300
150		29250

Explanation for 30 units @ 210

1. Under FIFO 7 units are in stock out of total purhcase of 20 units

2. Balance 30 units hence would be @ 210 since under LIFO entire 37 units is at 180 ( out of 42 units )

AVERAGE COST = Total Cost/ Total Units

29250/150= 195

MERCHANDISE INVENTORY =Avg cost x Inventory in stock

= 195x74= 14430

MERCHANDISE SOLD = Units sold x Avg Cost

= (150-74) * 195= 76*= 14820