What is inventory cost?

Beginning inventory of 1500 units costing $21. using LIFO, what is the cost of ending inventory? more info..?

• beginning inventory of 1500 units costing $21. purchases are as follows: may 9: 2000 units @ 22 may 17: 3500 units @ 23 may 26: 1000 units @ 24 a physical count on may 31 shows 2, 100 units. using lifo, what is the ending inventory? usinf fifo, what is the ending inventory? using average cost, what is the ending inventory?

• Answer:

  a) LIFO Under LIFO, ending inventory consists of the earliest purchases. Of the 2,100 units remaining in inventory, 1,500 came from beginning inventory, and 600 came from the May 9 purchase. Ending Inventory LIFO : 1,500 @ $21 = $ 31,500 600 @ $22 . = . .13,200 - - - - - - - - - - - - - - - - - - - - Total . . . . . . . $ 44,700 ------- b) FIFO Under FIFO, ending inventory consists of the most recent purchases. Of the 2,100 units remaining in inventory, 1,000 came from the May 26 purchase, and 1,100 came from the May 17 purchase. Ending inventory FIFO 1,000 @ $24 = $ 24,000 1,100 @ $23 = . .25,300 - - - - - - - - - - - - - - - - - - - Total . . . . . . . .$ 49,300 ------ c) weighted average Total cost = [ (1,500 x $21) + (2,000 x $22) + (3,500 x $23) + (1,000 x $24) ] = ( $ 31,500 + $ 44,000 + $ 80,500 + $ 24,000 ) = $ 180,000 -- Total units available for sale = ( 1,500 + 2,000 + 3,500 + 1,000 ) = 8,000 -- Average cost per unit = ( $ 180,000 / 8,000 ) = $ 22.50 Ending inventory (average cost method) = ( 2,100 x $ 22.50 ) = $ 47,250