Herbor company uses a periodic inventory system. The companys records show the beginning inventory of Product no
Question:
Herbor company uses a periodic inventory system. The company’s records show the beginning inventory of Product no .T12 on January 1 and the purchases of this item during the current year to be as follows:
Jan. 1 Beginning inventory | 900 units | @ $10.00 | $ 9,000 |
Feb. 23 Purchase | 1,200 units | @ $11.00 | 13,200 |
Apr. 20 Purchase | 3,000 units | @ $11.20 | 36,300 |
May 4 Purchase | 4,000 units | @ $11.60 | 46,400 |
Nov. 30 Purchase | 900 units | @ $13.00 | 11,700 |
Totals | 10,000 units | $ 113,900 |
A physical count indicates 1,600 units in inventory at year-end.
Determine the cost of the ending inventory. based on each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.)
a. Average cost.
b. FIFO.
c. LIFO.
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones