question archive The following information is available for Massey Company: Beginning inventory 600 units at $5 First purchase 900 units at $6 Second purchase 500 units at $7 Assume that Massey uses a periodic inventory system and that there are 700 units left at the end of the month
The following information is available for Massey Company: Beginning inventory 600 units at $5 First purchase 900 units at $6 Second purchase 500 units at $7 Assume that Massey uses a periodic inventory system and that there are 700 units left at the end of the month
Subject:AccountingPrice:3.87 Bought7
The following information is available for Massey Company:
Beginning inventory 600 units at $5
First purchase 900 units at $6
Second purchase 500 units at $7
Assume that Massey uses a periodic inventory system and that there are 700 units left at the end of the month.
Instructions
Compute the cost of ending inventory under the
-
- FIFO method.
- LIFO method.
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Answer:
a. FIFO Ending Inventory Cost:
500 × $7 = $3,500
200 × $6 = 1,200
$4,700
b. LIFO Ending Inventory Cost:
600 × $5 = $3,000
100 × $6 = 600
$3,600
