The units of Manganese Plus available for sale during the ye

The units of Manganese Plus available for sale during the year were as follows Mar. 1 Inventory 20 units $29 50 June 16 Purchase 30 units $35 1,050 Nov. 28 Purchase 46 units o$35 1,610 96 units 3,240 There are 11 units of the product in the physical inventory at November 30. The periodic inventory system is used Round answers to the nearest whole dollar. a. Determine the inventory cost by the FIFO method. b. Determine the inventory cost by the LIFO method. 201

Solution

1. INVENTORY COST BY FIFO METHOD

= 11 UNITS*$35 = $385

2.INVENTORY COST BY LIFO METHOD

= 11 UNITS * $29 = $319

3. .INVENTORY COST BY AVERAGE COST METHOD

= 11UNITS*$33.75 = $371.25 = $371

AVERAGE COST = $3,240/96 = $33.75

INVENTORY	20	$29	$580
PURCHASE	30	$35	$1,050
PURCHASE	46	$35	$1,610
TOTAL	96		$3,240