Question
FIFO, LIFO and Average Cost Company XYZ Units Cost Per Unit 1 May Beginning Inventory 10,000 $1.00 5 May Sold 5,000 10 May Purchase 10,000
FIFO, LIFO and Average Cost
Company XYZ Units Cost Per Unit
1 May Beginning Inventory 10,000 $1.00
5 May Sold 5,000
10 May Purchase 10,000 $2.00
15 May Sold 5,000
20 May Purchase 10,000 $3.00
25 May Sold 20,000
30 May Purchase 10,000 $4.00
31 May Ending Inventory 10,000
a) Compute ending FIFO inventory value at 5-31
b) Compute FIFO cost for May
c) Compute LIFO inventory value (period inventory)
d) Compute LIFO cost for May (period inventory)
e) Compute ending May inventory value (average cost-period)
f) Compute May cost using average cost for the period
g) Compute ending LIFO inventory value (perpetual method)
h) Compute May cost using LIFO (perpetual method)
i) Under what two conditions would all three methods yield the same inventory value and same cost?
I know it's a lot! Please show some work. Thanks!
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