Question

The units of Manganese Plus available for sale during the year were as follows:

Mar. 1	Inventory	22 units	@ $29	$638
June 16	Purchase	28 units	@ $33	924
Nov. 28	Purchase	43 units	@ $38	1,634
		93 units		$3,196

There are 12 units of the product in the physical inventory at November 30. The periodic inventory system is used. Round answers to the nearest whole dollar.

a. Determine the inventory cost by the FIFO method.
$

b. Determine the inventory cost by the LIFO method.
$

c. Determine the inventory cost by the average cost methods.
$

Answer 1

a) Inventory under FIFO = 12*38 = 456

b) Inventory under LIFO = 12*29 = 348

c) Inventory under average cost = 3196/93*12 = 412