Assume your organization has the following inventory changes during the fiscal year:
Beginning Inventory 1,000 units valued at $10 each
April purchases 600 units at $15 each
August purchases 2,100 units at $17 each
Total Units Remaining 500
Calculate the value of the ending inventory and the value of the inventory used (the inventory expense) for the year using both the FIFO and the LIFO method of cost-flow.

Question

Quizplus · Accepted Answer

The Answer is FIFO:
3,200 Units Used
1,000 units @ $10 each = $10,000
600 units @ $15 each = $19,000
1,600 units @ $17 each = $27,200
Inventory Expense $56,200
Remaining Inventory
Value of ending inventory = 500 @ $17 each
Value of ending inventory = $8,500
LIFO:
3,200 Units Used
2,100 units @ $17 each = $35,700
600 units @ $15 each = $ 9,000
500 units @ $10 each = $ 5,000
Inventory Expense $49,700
Remaining Inventory
Value of ending inventory = 500 @ $10 each
Value of ending inventory = $5,000

Assume Your Organization Has the Following Inventory Changes During the Fiscal