Question 1.

There are transactions as below.

1/1: The beginning number of items was 1,000 items. The total amount was 12,000 JPY.

3/15: Purchased 2,000 items by 18,000 JPY.

4/24: Sold 500 items.

10/20: Purchased 1,000 items by 10,000 JPY.

12/2: Sold 1,500 items.

a. How much is the ending balance of the inventory by FIFO method?

1. 18,000 JPY
2. 19,000 JPY
3. 20,000 JPY
4. 21,000 JPY
5. 22,000 JPY

b. How much is the ending balance of the inventory by LIFO method?

1. 18,000 JPY
2. 19,000 JPY
3. 20,000 JPY
4. 21,000 JPY
5. 22,000 JPY

c. How much is the ending balance of the inventory by Average method we learned at class?

1. 18,000 JPY
2. 19,000 JPY
3. 20,000 JPY
4. 21,000 JPY
5. 22,000 JPY