Question

Question 1 In its first month of operations, Weatherall Company made three purchases $12. ses of merchandise in the following sequence:(t) 100 units at $10, (2) 500 units at $11, and(3) 110 unts at Assuming there are 380 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Weatheral uses a de nventory system. FLPO LIFO Cost of the ending inventory s

Answer 1

Ans.			FIFO	LIFO
	COST OF THE ENDING INVENTORY		4290	4080
	*Calculations:
1	FIFO:
	*Cost of ending inventory:
	Purchase No.	Units	Rate	Cost
	3	110	12	1320
	2	270	11	2970
	Total	380		4290
2	LIFO:
	*Cost of ending inventory:
	Purchase No.	Units	Rate	Cost
	1	100	10	1000
	2	280	11	3080
	Total	380		4080