Question

Brief Exercise 6-3 In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 188 units at $9, (2) 523 units at $10, and (3) 136 units at $11 Assuming there are 331 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Bethke uses a periodic inventory system. LIFO FIFO The cost of the ending inventory

Answer 1

	Bethke Company
	Units Purchased	Purchase price	Purchase Price
1	188	$                    9.00	$                1,692.00
2	523	$                  10.00	$                5,230.00
3	136	$                  11.00	$                1,496.00
	Ending Inventory	331	Units
	FIFO Method
	(A)	(B)	(A)*(B)
	Units	Price	Cost of Inventory
3	136	$                  11.00	$                1,496.00
2	195	$                  10.00	$                1,950.00
	331		$                3,446.00
LIFO Method
	(C)	(D)	( C)*(D)
	Units	Price	Cost of Inventory
1	188	$                    9.00	$                1,692.00
2	143	$                  10.00	$                1,430.00
	331		$                3,122.00
		FIFO	LIFO
	The cost of ending inventory	$            3,446.00	$                3,122.00