Naab Inc. uses a periodic inventory system. Its records show the following for t
ID: 2360049 • Letter: N
Question
Naab Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 115 units were sold.Date Explanation Units Unit Cost Total Cost
May 1 Inventory 44 $13 $572
May 15 Purchase 37 15 555
May 24 Purchase 59 16 944
Total 140 $2,071
Calculate 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.)
FIFO..........................
Average-cost..................
LIFO..............................
Calculate the amount allocated to cost of goods sold under each method.
FIFO..............................
Average-cost.......................
LIFO.................................
Explanation / Answer
25 in the ending inventory Let's figure out the average cost (2071/140) = $14.79285 each FIFO = 25 * $16 = $400 Average-Cost = $369.821 LIFO = 25 * $13 = $325 The cost of goods sold is $2071 minus the ending inventory so: FIFO = $1671 Average Cost = $1701.179 LIFO = $1746
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