Pemberton Products uses a periodic inventory system. The company’s records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to
be as follows:
Jan. 1 | Beginning inventory | 9 units @ $3.00 | $ 27,00 |
Feb. 23 | Purchase | 12 units @ $3.50 | 42.00 |
Apr. 20 | Purchase | 30 units @ $3.80 | 114.00 |
May 4 | Purchase | 40 units @ $4.00 | 160.00 |
Nov. 30 | Purchase | 19 units @ $5.00 | 95.00 |
| Totals | 110 units | $438.00 |
A physical count indicates 20 units in inventory at year-end.
Determine the cost of the ending inventory, based on each of the following methods of invention valuation, (Remember to use periodic inventory costing procedures.)
a. Average cost
b. FIFO
c. LIFO
d. Which of the above methods (if any) results in the same ending inventory valuation under both periodic and perpetual costing procedures? Explain.
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