Question

In its first month of operations, Concord Company made three purchases of merchandise in the following sequence: (1) 320 units at $7, (2) 450 units at $8, and (3) 210 units at $9. Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Concord uses a periodic inventory system.

Answer 1

Cost of Ending Inventory as per FIFO
Purchases	Units	Unit Cost	Total Cost
Second	150	$8	$1,200
Third	210	$9	$1,890
	360		$3,090

Ending inventory as per FIFO = $3,090

Cost of Ending Inventory as per LIFO
Purchases	Units	Unit Cost	Total Cost
First	320	$7	$2,240
Second	40	$8	$320
	360		$2,560

Ending inventory as per LIFO = $2,560

Kindly comment if you need further assistance. Thanks‼!