Question Details

What is the cost of the ending inventory 



Ex. 1—Comparison of FIFO and Average Cost.
During periods of rising prices, the use of FIFO (as compared with average cost) will result in what effect on the financial statements?

Ex. 2—FIFO and Average Cost inventory methods.
During June, the following changes in inventory item 27 took place:

	June   1	Balance	1,400 units @ $24
	14	Purchased	900 units @ $36
	24	Purchased	700 units @ $30
	8	Sold	400 units @ $50
	10	Sold	1,000 units @ $40
	29	Sold	500 units @ $44
Perpetual inventories are maintained in units only.

Instructions
What is the cost of the ending inventory for item 27 under the following methods?  (Show calculations.)
(a)	FIFO.
(b)	Average Cost.



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