Question

In its first month of operations, Ivanhoe Company made three purchases of merchandise in the following sequence: (1) 300 units at $7, (2) 360 units at $8, and (3) 220 units at $9. Assuming there are 410 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Ivanhoe uses a periodic inventory system.

What is FIFO and LIFO Ending Inventory?

Question 5 0/1 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. In its first month of operations, Ivanhoe Company made three purchases of merchandise in the following sequence: (1) 300 units at $7, (2) 360 units at $8, and (3) 220 units at $9. Assuming there are 410 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Ivanhoe uses a periodic inventory system. FIFO LIFO Ending inventory $ 2340 2870

Answer 1

Answer: Total units purchased = 300 +360+ 2.20 = 880 units Ending inventory = 410 units As per fifo method ; Ending inventory is - (220x $9) + ((110-220)x #s) z #1980 + $1520 = $3500 As per Lipo methods Ending inventory is = (300 * $ 7) + (410-300) * +8) = $2100 + $880 $ 2980 Thanks