Question: Comparing inventory methods Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first months milk purchases and sales at its

Comparing inventory methods

Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first months milk purchases and sales at its Freeport, Florida, location follow:

Nov. 2 Purchased 11 gallons @ $2.15 each

Nov. 6 Purchased 2 gallons @ $2.80 each

Nov. 8 Sold 6 gallons of milk to a customer

Nov.13 Purchased 3 gallons @ $2.85 each

Nov.14 Sold 4 gallons of milk to a customer

Requirements:

1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method.

2. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method.

3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.

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