Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at $6, (2) 470 units at $8, and (3) 570 units at $9. Assuming there are 270 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Wildhorse Co. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount

Sagot :

Zviko

Answer:

The cost of the ending inventory under FIFO is $2,430 and under LIFO is  $1,620

Explanation:

First determine the units sold

Units Sold = Total Purchases - Units in hand

                  = 1,410 units - 270 units

                  = 1,140

Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.

FIFO

Means First in First Out

Cost of the ending inventory = 270 x $9.00 = $2,430

LIFO

Means Last in First Out

Cost of the ending inventory = 270 x $6.00 = $1,620

Conclusion

The cost of the ending inventory under FIFO is $2,430 and under LIFO is  $1,620

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.