a company made purchases as follows. find the inventory value using three different methods. beginning…

a company made purchases as follows. find the inventory value using three different methods. beginning inventory 250 units at $1.50 june 500 units at $1.60 july 670 units at $1.10 august 210 units at $1.15 now in inventory 390 units find the inventory value using the weighted average method. $514.80 (round to the nearest cent as needed.) find the inventory value using the fifo method. $439.50 (round to the nearest cent as needed.) find the inventory value using the lifo method. $ (round to the nearest cent as needed.)

a company made purchases as follows. find the inventory value using three different methods. beginning inventory 250 units at $1.50 june 500 units at $1.60 july 670 units at $1.10 august 210 units at $1.15 now in inventory 390 units find the inventory value using the weighted average method. $514.80 (round to the nearest cent as needed.) find the inventory value using the fifo method. $439.50 (round to the nearest cent as needed.) find the inventory value using the lifo method. $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Calculate the total units and total cost

  • Total units = (250 + 500+670 + 210=1630) units
  • Total cost:
    • Beginning inventory: (250\times1.50 = 375)
    • June: (500\times1.60=800)
    • July: (670\times1.10 = 737)
    • August: (210\times1.15=241.5)
    • Total cost (=375 + 800+737+241.5=2153.5)

Step2: Apply LIFO method

Under LIFO (Last - In - First - Out), we assume that the last - purchased items are sold first. The number of units in inventory is (390) units. We first take units from the earliest purchases.

  • After using up the August ((210) units) and July ((670) units) purchases (since (210 + 670=880>390) is not correct, we should work backwards). The total units (=1630), units in inventory (=390). So units sold (=1630 - 390=1240) Under LIFO, we sell from the latest purchases first:
    • Sell (210) (August) and (670) (July) and (360) (June). So the inventory comes from the beginning inventory and the remaining June inventory.
    • Inventory value: (250\times1.50+(390 - 250)\times1.60)
    • (250\times1.50=375)
    • ((390 - 250)\times1.60=140\times1.60 = 224)
    • Inventory value (=375+224=599)

Answer:

(599.00)