Bramble Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $24per unit. None of this inventory was sold in 2019. Relevant information is as follows.

Ending inventory unit

December 31, 2019 175

December 31, 2020, by purchase date

December 2, 2020 175

July 20, 2020 50 225

During the year 2020, the following purchases and sales were made.

Purchases Sales

March 15 375unitsat$28 April 10 275

July 20 375unitsat30 August 20 375

Sept 4 275unitsat33 November 18 225

December 2 175unitsat35 December 12 275

The company uses the periodic inventory method.

Calculate:

1.The average-cost per unit

2.Ending Inventory

a. FIFO

b. LIFO

c. Average-Cost

3.Price Index

Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $24per unit.)

Solve:

4.Ending inventory at LIFO