Marigold Corp. had 2,060 units of part M.O. on hand May 1, 2017, costing $33 eac

Question

Marigold Corp. had 2,060 units of part M.O. on hand May 1, 2017, costing $33 each. Purchases of part M.O. during May were as follows.

Units

Units Cost

A physical count on May 31, 2017, shows 2,560 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 1,620.)

FIFO

LIFO

Average Cost

Units

Units Cost

May 9 2,560 $34 17 4,060 36 26 1,560 37

Explanation / Answer

Calculate Inventory cost under following method :

Average cost per unit = 358900/10240 = 35.05 per unit

FIFO LIFO Average cost No of units available for sale 10240 10240 10240 Cost of goods available for sale 358900 358900 358900 Ending inventory cost (1560*37+1000*36)=93720 (2060*33+500*34) = 84980 35.05*2560 = 89728

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