Question

The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 20 units @ $31 $620 June 16 Purchase 29 units @ $31 899 Nov. 28 Purchase 40 units @ $36 1,440 89 units $2,959 There are 12 units of the product in the physical inventory at November 30. The periodic inventory system is used. Round answers to the nearest whole dollar.

a. Determine the inventory cost by the FIFO method. $ ______

b. Determine the inventory cost by the LIFO method. $ ______

c. Determine the inventory cost by the average cost methods. $ _____

Beginning inventory, purchases, and sales for Product XCX are as follows:

Sep. 1	Beginning Inventory	23 units	@	$11
5	Sale	11 units
17	Purchase	22 units	@	$14
30	Sale	17 units

Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30. Determine the cost of merchandise sold.

Answer 1

1
	Units	Unit cost	Total
Mar 1	20	31	620
June 16	29	31	899
Nov. 28	40	36	1440
	89		2959
Average cost = 2959/89 =$33.25
a
Inventory cost by the FIFO method	432	=12*36
b
Inventory cost by the LIFO method	372	=12*31
c
Inventory cost by the Average cost	399	=12*33.25
Question -2
a
Cost of the merchandise sold for Sep 30	238	=17*14
b
Inventory on September 30	202	=(22-17)*14+(23-11)*11