Accounting records at Wayne, Inc., show the following purchases, periodic inventory counts, and market prices.

Instructions:

1. Calculate the inventory costs using the FIFO, LIFO, and weighted average inventory costing methods.
Assume that the lower of cost or market method is applied to each inventory item separately. Use a form similar to the following. The inventory cost for Stock No. A30 is given as an example.

2. Total the three Lower of Cost or Market columns.

3. Which of the three methods of costing inventory results in the highest inventory cost for Wayne, Inc.? Which results in the lowest inventory cost?

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Stock January 1 Inventory First Purchase Second Purchase Third Purchase Fourth Purchase No. Unit Unit Unit Unit Unit December 31 Inventory December 31 Market Price No. Price A30 15 $8.00 15 $10.00 B18 10 9.00 10 9.00 12 C45 22 5.00 30 6.00 30 D12 12 7.00 G 7.00 5205 No. Price No. Price No. Price No. Price 15 $12.00 20 $14.00 9.00 12 8.00 12 6.00 30 7.00 9.00 10 8.00 2205 20 $10.00 35 8.00 30 8.00 7.00 282 $12.00 30 7.50 64 8.00 20 7.50