Calculate the value of the ending inventory using the following methods

Excel formulas are not needed for this example,

Be sure to show all work and how you arrive at the answer

You may wish to review the examples I have placed in Engage to successfully complete this problem.

(The textbook does not actually fully demonstrate how to solve the problem)

(also shown here)

beginning inventory

1 unit @10.00

1st purchase

2 units $10.50 each

2nd purchase

3 units @$10.75 each

3rd purchase

4 units @$11.00 each

used 3units

Step 1:

determine the actual inventory

1+2+3+4= 10 units available

Step 2 10 units available - 3 units used

10 units available - 5 units used

le - 3 units

10-3= 7 units in inventory

Step 3 for weighted average find the average of the inventory cost

1 unit @10.00

$10

2 units $10.50 each

$21

3 units @$10.75 each

$32.25

4 units @$11.00 each

$44.00

$107

Step 4

$107/10= $10.70 each

Step 5

$10.70 x 7=

$74.90 answer

FOR FIFO

Step 1

The quantity does not change in all methods, we already know there are 7 units in inventory

FIFO valuation starts at the BOTTOM, not top

4 units @$11

$44

3 units @$10.75

$32.50

7 units

$76.50

FOR LIFO

The quantity does not change in all methods, we already know there are 7 units in inventory

LIFO valuation starts at the top NOT BOTTOM

1 unit @10.00

$10

2 units $10.50 each

$21

3 units @$10.75 each

$32.25

7 units

$63

Note in all cases 7 units was valued.

Now your problem this week

Beginning inventory

100 units @ $1.00 each

September purchased

150 units @$2.00 each

October purchased

200 units @$3.00 each

November purchased

300 units @$3.50 each

used 301 units

SHOW WORK HERE

WEIGHTED AVERAGE

FIFO

LIFO