Bronco General Hospital purchased OR implants on the following dates and amounts

Question

Bronco General Hospital purchased OR implants on the following dates and amounts.

A – Using FIFO what is the ending cost of inventory?
B - Using LIFO what is the ending cost of inventory?
B - Using weighted average what is the ending cost of inventory?

Date Units Price Total 1/1 Beginning Balance 60 2500 150000 3/27 Purchase 20 2450 49000 4/15 Purchase 15 1500 22500 6/25 Purchase 20 1700 34000 7/30 Purchase 25 1600 40000 9/28 Purchase 18 1700 30600 11/15 Purchase 15 1900 28500 12/31 Ending Balance 75

Explanation / Answer

a) FIFO Ending inventory Units Unit cost Total Inventory from purchase 11/15 15 1900 28500 Inventory from purchase 9/28 18 1700 30600 Inventory from purchase 7/30 25 1600 40000 Inventory from purchase 6/25 17 1700 28900 75 128000 Ending inventory is $128000 b) LIFO Ending inventory Units Unit cost Total Inventory from beginning balance 60 2500 150000 Inventory from purchase 3/27 15 2450 36750 75 186750 Ending inventory is $186750 c)Weighted Average cost: Units available for sale= 60+20+15+20+25+18+15= 173 Average cost per unit= cost of goods available for sale/total units available                                             =(150000+49000+22500+34000+40000+30600+28500)/173                                             =354600/173=2049.71 Ending inventory= 75*2049.71=$153728.25

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