Murphy, Inc , purchased a new inventory item two times during the month of April, as follows Apr 5 100 units $5 00 Apr 15 100 units $5 05 a What is the amount of the ending inventory of this item on April 30 if the company has sold 75 units and uses the LIFO inventory method b How would this amount...

Units in ending inventory 100 100 75 125 un ...

Murphy, Inc., purchased a new inventory item two times during the month of April, as follows: Apr.

Question:

Murphy, Inc., purchased a new inventory item two times during the month of April, as follows:
Apr. 5 100 units @ $5.00
Apr. 15 100 units @ $5.05
a. What is the amount of the of this item on April 30 if the company has sold 75 units and uses the LIFO inventory method?
b. How would this amount differ if the company used the FIFO inventory method?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...