The goal here is to use the LIFO method of inventory to show how 40 out of 45 items purchased were used. Could you tell how the computations in the computations section are derived and of what use are they in making the example clearer. Is there a better way to get the same point across? What is the importance of the computations and could I get an answer without the computations. If so, why would I want to have a computations section when I could just theoretically see that ending inventory would have 5 left from beginning inventory when using the LIFO system?

Purchases Issued Balance Unit Cost $ Cost of Materials Issued Date Unit Cost $ Units Unit Cost $ Units Units Total (BI) 10 20 $15 20 ija: 11 10 30 15 15 5/1 5/5 5/15 5/19 5/24 5/30 $20 $300 175 $15 fa) (b) 15 (d) 15 $150 550 250 75 345 $75 EI - 10 (0) 15 18 - - 5 20 5 15 18 270 $745 Computations: (a) (10 x $15) + (20 x $20) = $550 (b) (10 x $15) + (5 x $20) = $250 (c) (5 x $20) + (5 x $15) = $175 (d) 15 x $15) + (15 x $18) = $345