Initial inventory is 15,000, unit cost is $30; Purchased 12,000 units on March 21 at a unit cost of $31; Purchased 5,000 units on June 21 at a unit cost of $32; Bought 2,000 units on September 21 at a unit cost of $33; Purchased; 10,500 units on November 21 at a unit cost of $35. There are 13,500 units in the closing inventory as of December 31.

Using a periodic inventory system:

1. What is the cost of inventory ending under FIFO?

2. What is the cost of closing inventory under LIFO?

3. What is the cost of finishing stock below average cost?

4. What is the cost of goods sold under FIFO?

5. What is the cost of goods sold under LIFO?

6. What is the cost of goods sold below the weighted average?

7. What would be the difference between LIFO and FIFO with respect to Net Income before tax of different inventory methods? Please enter a specific number.

Answer rating: 100% (QA)

To calculate the various costs and values using the FIFO LIFO and weighted average methods we need to analyze the inventory transactions and apply the corresponding formulas Lets calculate each value ... View the full answer