Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purcha
ID: 2582288 • Letter: B
Question
Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
23. The value of ending inventory using FIFO is
a. $1,250
b. $1,350
c. $1,375
d. $1,150
24. The value of ending inventory using LIFO is
a. $1,250
b. $1,350
c. $1,375
d. $1,150
25. The value of ending inventory rounded to nearest dollar using average cost is:
a. $1,353
b. $1,263
c. $1,375
d. $1,150
Explanation / Answer
Answer:
23. The value of ending inventory using FIFO is
c. $1,375
Working notes for the answer
Second purchase 5 units at $65
5
65
325
Third purchase 15 units at $70
15
70
1050
Ending inventory
20
1375
____________________________________________________
24. The value of ending inventory using LIFO is
d. $1,150
Working notes for the answer
Beginning inventory
10
55
550
First purchase
10
60
600
Ending inventory
20
1150
____________________________________________
25. The value of ending inventory rounded to nearest dollar using average cost is:
b=1263
Working notes for the answer
Unit
Price
Total
Beginning inventory 10 units at $55
10
55
550
First purchase 25 units at $60
25
60
1500
Second purchase 30 units at $65
30
65
1950
Third purchase 15 units at $70
15
70
1050
Average price =5050/80=
80
63.12
5050
Less Sold
-60
63.12
-3787
Closing
20
1263
Second purchase 5 units at $65
5
65
325
Third purchase 15 units at $70
15
70
1050
Ending inventory
20
1375
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