Question
Inventory valuation
During June, the following changes in inventory item #27 took place:
June 1
Balance
1,400 units @ $24
14
Purchased
800= units @ $36
24
Purchased
700 units @ $30
8
Sold
400 units @ $50
10
Sold
1,000 units @ $40
29
Sold
600 units @ $44
Perpetual inventories are maintained.
Instructions
What is the cost of the ending inventory for item #27 under the following methods? (Show calculations.)=
(a) FIFO.
(b) LIFO.
(c) Moving average