Problem 3. Inventory methods (15 points)

The following information is available from Jones's inventory record for Product X in 2017.

UnitsUnit Cost

January 1, 2017 (beginning inventory)2,400$18.00

Purchases:

January 5, 20173,900$20.00

March 25, 20173,600$21.00

July 16, 20171,500$22.00

October 15, 20172,700$23.00

Assume that Jones uses a periodic inventory system. A physical inventory on December 31, 2017, shows 3,000 units on hand.

Instructions

1.Compute the ending inventory at December 31, 2017, under each of the following inventory methods (Show supporting computations):

(a)FIFO.

(b)LIFO.

(c) Weighted Average Cost