The following data concerns inventory and purchases at Drake Company:

Inventory, January 1_______________100 units at $113

Purchases:

January 6.....................................70 units at $112

January 15....................................54 units at $112

January 22....................................44 units at $106

Inventory, January 31..............................100 units

INSTRUCTIONS

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

(a) Average cost method;

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

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

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

Analyze:

Which inventory valuation method resulted in the highest dollar amount for ending inventory?