E6-15 Comparing inventory methods

Learning Objective 2

1. Ending Merch. Inv. $16.30

Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first months milk purchases and sales at its Freeport, Florida, location follow:

Nov. 2	Purchased 11 gallons @ $2.15 each
6	Purchased 2 gallons @ $2.80 each
8	Sold 6 gallons of milk to a customer
13	Purchased 3 gallons @ $2.85 each
14	Sold 4 gallons of milk to a customer

Requirements

Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method.

Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method.

Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.