Inventory Costing Methods

Morrison Inc. reported the following information for the month of February:

Inventory, February 1 66 units @ $18

Purchase:

February 7 50 units @ $20

February 18 60 units @ $21

February 27 39 units @ $23

During February, Morrison sold 139 units. The company uses a periodic inventory system.

Required:

What is the value of ending inventory and cost of goods sold for February under the following assumptions.

Assumption Cost of Goods Sold Ending Inventory

1.Of the 139 units sold, 55 cost $18, 35 cost $20, 45 cost $21, and 4 cost $23.

$fill in the blank 1 $fill in the blank 2

2.FIFO $fill in the blank 3 $fill in the blank 4

3.LIFO $fill in the blank 5 $fill in the blank 6

4.Weighted average method (Round average unit cost to the nearest cent,

and round all other calculations and your final answers to the nearest dollar.

$fill in the blank 7 $fill in the blank 8

Answer from your tutor:

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dalwanidivyaAnswered37 minutes ago

1.Of the 139 units sold, 55 cost $18, 35 cost $20, 45 cost $21, and 4 cost $23.

Ending inventory

(66- 55) * $18 = $198

(+) (50-35) *$20 = $300

(+) (60-45) * $21 = $315

(+) (39-4) * $23 = $805

Total ending inventory unit = 76?

Total cost of Ending Inventory= $1618

Question:

How did it get 76?