The units of Product Green-2 available for sale during the year were as follows:

Question

The units of Product Green-2 available for sale during the year were as follows: Apr 1 Inventory 15 @ $30 Jun 16 Purchase 29 @ $33 Sep 28 Purchase 45 @$35 There are 17 units of the product in the physical inventory at Sep 30. The periodic inventory system is used. Determine the cost of merchandise sold by (a) FIFO, (b) LIFO, and (c) average cost methods. In your computations, round the average cost per unit to two decimal places and round your final answer to two decimal places. a. FIFO b. LIFO c. Average Can someone please give me insight on figuring the LIFO & FIFO? I have 2 big homework problems I am having a hard time figuring out.

Explanation / Answer

In LIFO the last product we buy will sold out first. and in FIFO first in first out. a) FIFO - 15*30+29*33+28*35 = 2387 b) LIFO = 45*35 + 27*33 = 2466 c) Average cost = (15*30 + 29*33 + 45 *35)/89 = 33.50 cost = (89-17)*33.5 = 2412.40

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