Problem 17.1A Computing inventory costs under different valuation methods. LO 17-1 The following data concerns inventory...

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Problem 17.1A Computing inventory costs under different valuation methods. LO 17-1 The following data concerns inventory and Average Cost FIFO LIFO Analyze Determine the cost of the ending inventory on January 31 under the first in, first out (FIFO)

Average Cost FIFO LIFO Analyze Determine the cost of the ending inventory on January 31 under the last in, first out (LIFO) m

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Answer 1

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1
Average cost	Merchandise available for sale			Ending inventory
	Number of units	Unit cost	Total cost	Number of units	Unit cost	Total cost
Beginning inventory, January 1	95	108	10260
Purchases:
January 6	65	107	6955
January 15	50	107	5350
January 22	40	101	4040
Total	250	106.42	26605	93	106.42	9897

2
FIFO	Merchandise available for sale			Ending inventory
	Number of units	Unit cost	Total cost	Number of units	Unit cost	Total cost
Beginning inventory, January 1	95	108	10260	0	108	0
Purchases:
January 6	65	107	6955	3	107	321
January 15	50	107	5350	50	107	5350
January 22	40	101	4040	40	101	4040
Total	250		26605	93		9711

3
LIFO	Merchandise available for sale			Ending inventory
	Number of units	Unit cost	Total cost	Number of units	Unit cost	Total cost
Beginning inventory, January 1	95	108	10260	93	108	10044
Purchases:
January 6	65	107	6955	0	107	0
January 15	50	107	5350	0	107	0
January 22	40	101	4040	0	101	0
Total	250		26605	93		10044

4
LIFO resulted in highest ending inventory

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Answer 2

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