Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Inventory, December 31= 1,960 units at $ 6
For the current year:
Purchase, March 21= 6,200 units at $5
Purchase, August 1= 4,020 units at $3
Inventory, December 31, current year 2,980 units
We need to determine the cost of inventory using the following methods:
LIFO (last-in, first-out)
Inventory= 1,960*6 + 1,020*5= $16,860
FIFO (first-in, first-out)
Inventory= 2,980*3= $8,940
Weighted Average:
Average cost= (6 + 5 + 3)/3= 4.67
Inventory= 2,980*4.67= $13,916.6
