Cost Inventory Method Merchandise Merchandise Inventory Sold


	Cost
Inventory Method	Merchandise		Merchandise
Inventory		Sold

FIFO	$7,728		$21,522
LIFO	6,660		22,590
Average cost



Cost of merchandise available for sale:
	42		units at	$180	=	$ 7,560
	58		units at	$195	=	11,310
	20		units at	$204	=	4,080
	30		units at		=
	150		units

First-in, first-out:
Merchandise inventory:
	30		units at	$210	=	6,300
	7		units at	$204	=	1,428
	37		units			$ 7,728

Merchandise sold					$ 21,522

Last-in, first-out
Merchandise inventory:
	37		units at	$180	=	$ 6,660

Merchandise sold					$ 22,590

Average cost
Average cost =			total cost /	150	total units

=

Merchandise inventory:
			units at		=

Merchandise sold


	Cost
Inventory Method	Merchandise		Merchandise
Inventory		Sold

FIFO	$7,728		$21,522
LIFO	6,660		22,590
Average cost



Cost of merchandise available for sale:
	42		units at	$180	=	$ 7,560
	58		units at	$195	=	11,310
	20		units at	$204	=	4,080
	30		units at		=
	150		units

First-in, first-out:
Merchandise inventory:
	30		units at	$210	=	6,300
	7		units at	$204	=	1,428
	37		units			$ 7,728

Merchandise sold					$ 21,522

Last-in, first-out
Merchandise inventory:
	37		units at	$180	=	$ 6,660

Merchandise sold					$ 22,590

Average cost
Average cost =			total cost /	150	total units

=

Merchandise inventory:
			units at		=

Merchandise sold

Closing Inventory
30 units @ $210- FIFO

7 units @ $204

LIFO

37 units @$ 180

PURCHASES

Explanation for 30 units @ 210

1. Under FIFO 7 units are in stock out of total purhcase of 20 units

2. Balance 30 units hence would be @ 210 since under LIFO entire 37 units is at 180 ( out of 42 units )

AVERAGE COST = Total Cost/ Total Units

29250/150= 195

MERCHANDISE INVENTORY =Avg cost x Inventory in stock

= 195x74= 14430

MERCHANDISE SOLD = Units sold x Avg Cost

= (150-74) * 195= 76*= 14820