Marvin Company has a beginning inventory of 13 sets of paints at a cost of $1.00

Question

Marvin Company has a beginning inventory of 13 sets of paints at a cost of $1.00 each During the year, the store purchased 5 sets at $1.10, 7 sets at $1.70, 7 sets at $2 00, and 11 sets at $2.50. By the end of the year, 28 sets were sold a. Caiculate the number of paint sets in ending inventory Number of paint sets o. caculate the cost or endng inventory under LIFO, FFO, and the weighted average methods (Round your answers to the nearest cent.) Cost of ending inventory under LIFO Cost of ending inventory under FIFO

Explanation / Answer

a) Calculate ending inventory :

Cost of goods available for sale = (13*1+5*1.1+7*1.70+7*2+11*2.50)=71.90

Units of goods available for sale = (13+5+7+7+11) = 43

Ending inventory = (13+5+7+7+11-28) = 15 sets

b) Calculate cost of ending inventory :

Cost of ending inventory under FIFO (11*2.50+4*2) 35.50 Cost of ending inventory under LIFO (13*1+2*1.1) 15.20 Cost of ending inventory under weighted average (71.90/43)*15 25.08

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