The Units of Manganese Plus Available for Sale During the Year

question 75

Essay

The units of Manganese Plus available for sale during the year were as follows:? $$\begin{array} { l l l l l } \text { Mar. 1 } & \text { Inventory } & 16 \text { units } & @ \$ 30 & \$ 480 \\\text { June } 16 & \text { Purchase } & 30 \text { units } & @ \$ 35 & 1,050 \\\text { Nov. } 28 & \text { Purchase } & \underline { 45 } \text { units } & @ \$ 39 & \underline { 1,755 } \\& & { \underline { \mathbf { 9 1 } } \text { units } } & & \underline { \mathbf { \$ 3 , 2 8 5 } }\end{array}$$ There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost by the
(a) FIFO,
(b) LIFO, and
(c) average cost methods.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan’s balance.

Acquisition Cost

The total cost incurred to acquire an asset, including the purchase price and additional expenses necessary to bring it to its intended use.

Present Value

The present value of a future amount of money or series of cash flows, considering a certain rate of return.

Annuity Due

An annuity for which payments are made at the beginning of each period.