Question

Riverbed Corp uses a periodic inventory system. Its records show the following for the month of May, in which 75 units were sold.

Date		Explanation		Units		Unit Cost		Total Cost
May 1		Inventory		34		$8		$272
15		Purchase		26		9		234
24		Purchase		40		10		400
		Total		100				$906

Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average unit cost

Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory at May 31

Answer 1

Weighted average unit cost = 906/100

= 9.06

	Fifo	Lifo	Average cost
Ending inventory (25 units)	= (25*10) = 250	= (25*8) = 200	= (25*9.06) = 226