Naab Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 78 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 30 $9 $270
May 15 Purchase 25 10 250
May 24 Purchase 40 11 440
Total 95 $960
Calculate the ending inventory at May 31 using the (a) FIFO, (b) averagecost, and (c) LIFO methods. (Round all answers to 0 decimal places, e.g. 2,555. For average cost computations round the per unit cost to 3 decimal places, e.g. 2.550.)
1 Answer

Well for FIFO the answer i think is 187
17 of the 40 units that remain of the may 24 purchases are multiplied with 11(cost per unit) = 187
For LIFO the answer is 153
The purchases made on 15th and 24th are sold off but 17 units of the opening inventory which are remaining are mulitplied with 9 (cost per unit) = 153
For average cost it is i think 170 although the exact answer is 171.789
Average Cost = 960/95 = 10.10
Then 10.10 x 17 units = 170 (after rounding off)
(assuming those 78 units are sold after may 24)