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Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under each of three methods:
Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost, (b) FIFO, and (c) LIFO. (Show your work.)
Assume that a periodic inventory system is used.
| Jan. | 1 |
| Beginning inventory | 225 items @ $3 = | $ 675 |
| May | 1 |
| Purchases | 675 items @ $6 = | 4,050 |
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| Totals | 900 items | $4,725 |
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| Total sales | 450 items |
|
| Dec. | 31 |
| Ending inventory | 450 items |
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