QUESTION 21

21. The following information is gathered in relation to sales and purchases of inventory during a year.

January 1 Beginning inventory 150 items @ $3 = $ 450

May 1 Purchases 450 items @ $6 = $2,700

Total 600 items $3,150

Total sales 300 items

December 31 Ending inventory 300 items

Given the information about purchases and sales during the year, calculate the cost to be allocated to ending inventory for each of the methods indicated below, and the inventory turnover ratio using the cost assigned on an average basis to ending inventory.

(a) Cost allocated to ending inventory using average cost method: $__________

(b) Cost allocated to ending inventory using FIFO method: $__________

(c) Costs allocated to ending inventory using LIFO method: $__________

(d) Inventory turnover ratio assuming cost allocated to ending inventory using FIFO method: __________

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