Ending Inventory

The following information is for the inventory of mini-kettles at Texas Company Limited for the month of May:

Date

-------Transaction--------

Units------ In

Unit Cost

------------Total

-------

Units Sold

--------

Unit Price

--------Total

May 1

------- Balance

------- 130

--------$4.20 -----------

$546

6

---------------Purchase-----------

800

-----------

$4.20-----------$

3,360

7--------------------Sale -----------------------------------------------------350--------$7.20--------$2,520

10

-------------------Sale ------------------------------------------------------350---------$7.40-------$2,590

12------------------Purchase---------410-----------$4.80----------$1,968

15

--------------------Sale-------------------------------------------------------------220------------$7.80----------$1,716

18------------Purchase------------320----------$4.80--------------$1,536

22

--------------Sale---------------------------------------------------------------------410--------------$7.80---------$3,198

25

--------------Purchase--------------540---------$4.40--------------$2,376

30

-----------------Sale--------------------------------------------------------------------220---------------$7.60-------$1,672

Totals------------------------------------ 2,200 --------------------------- $9,786 --- 1,550--------------------------- $ 11,696

A ) Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.

Ending Inventory $ ______________

B) Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

Ending Inventory $_________________

C) Which method (FIFO or weighted average) will yield the higher current ratio or gross profit?

Weighted average or FIFO ___________will yield the highest ending inventory

Weighted Average or FIFO ____________gives a higher gross profit.