The following data relates to the inventory and purchases of item 125 for McCray Company during May:

Question:

The following data relates to the inventory and purchases of item 125 for McCray Company during May:


INSTRUCTIONS
Determine the cost of the ending inventory on May 31 under each of the following methods: 

(a) Average cost method; 

(b) First-in, first-out (FIFO) method; 

(c) Last-in, first-out (LIFO) method. 

When using the average cost method, compute the unit cost to two decimal places.


Analyze: Which inventory amount will result in the highest income for the period?

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Related Book For  book-img-for-question

College Accounting Chapters 1-30

ISBN: 9781260247909

16th Edition

Authors: David Haddock, John Price, Michael Farina

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