Using the Following Information Calculate the Ending Inventory Balance and the Cost

question 12

Essay

Using the following information calculate the ending inventory balance and the cost of goods sold expense that would be reported at the end of the year if the following inventory valuation methods are used:
a.Average cost
b.FIFO
c.LIFO
$$\begin{array} { l r c } & \text { Units } & \text { Purchase Price } \\\text { Beginning inventory } & 8 & \$ 8 \\\text { Purchase \#1 } & 15 & \$ 9 \\\text { Purchase \#2 } & 24 & \$ 11 \\\text { Purchase \#3 } & 12 & \$ 13 \\\text { Sales } & 40 &\end{array}$$

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Definitions:

Investment

The allocation of money into financial assets, real estate, or other ventures with the expectation of obtaining additional income or profit.

Interest Earned

The amount of money gained on an investment or savings account over time due to applied interest rates.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Maturity Value

The amount that will be received at the end of a fixed income investment period, such as bonds or certificates of deposit.