Pete's Convenience Store has a beginning inventory of 12 cans of soup at a cost of $.85 each. During the year, the store purchased 4 at $.95, 6 at $1.05, 7 at $1.35, and 8 at $1.50. By the end of the year, 18 cans were sold. Calculate (A)the number of cans of soup in the ending inventory and (B)the cost of ending inventory under LIFO, FIFO, and weighted average.

Question

Quizplus · Accepted Answer

B. $17.15 (LIFO), $25.65 (FIFO), $21.47 (weighted average)
A. (12 + 4 + 6 + 7 + 8)- 18 = 37 - 18 = 19;
B. LIFO = (12 × $.85)+ (4 × .$95)+ (3 × $1.05)= $17.15; FIFO = (8 × $1.5)+ (7 × $1.35)+ (4 × $1.05)= $25.65; Weighted Avg = (12 × $.85)+ (4 × $.95)+ (6 × $1.05)+ (7 × $1.35)+ (8 × $1.50)= $41.75; $41.75 / (12 + 4 + 6 + 7 + 8)=$1.13; $1.13 × 19 = $21.47.

Pete's Convenience Store Has a Beginning Inventory of 12 Cans