Question Details

What value should be assigned to the ending inventory using FIFO 



Ex. 1—FIFO and Average Cost periodic inventory methods.
The Rock Shop shows the following data related to an item of inventory:
	Inventory, January 1	100 units @ $5.00
	Purchase, January 9	300 units @ $5.40
	Purchase, January 19	100 units @ $6.00
	Inventory, January 31	150 units


Instructions
(a)	What value should be assigned to the ending inventory using FIFO ?
(b)	What value should be assigned to cost of goods sold using Average Cost?
Ex. 2—FIFO and Average Cost Mitchell Company- record of transactions for the month of June was as follows.

                            Purchases                                                                Sales		
     June  1 (balance on hand)       600 @ $3.00	      June  3 (balance on hand)        500 @ $5.00
	   4		1,500 @   3.04               9 		1,300 @   5.00
	   8		   800 @   3.20             11		   600 @   5.50
	 13		1,200 @   3.25             23		1,200 @   5.50
	 21		   700 @   3.30             27		   900 @   6.00
	 29		   500 @   3.13			4,500
			5,300

Instructions
(a)	Assuming that periodic inventory records are kept, compute the inventory at 
	June 30 using (1) FIFO and (2) average cost.
(b)	Assuming that perpetual inventory records are kept in both units and dollars, determine the 	inventory at June 30 using (1) FIFO and (2) average cost.



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