Answer:
see below
Explanation:
The ending inventory is 75 units.
The cost of per unit of beginning inventory is $10,000/100 = $100
the cost per unit of purchases is $26,000 / 200 = $130
1) FIFO
First in, first out. under FIFO, the company would first sell the 100 units in stock, meaning the balance of 75 would be from the batch of 200 units
Cost of the ending inventory
= $75 x 130
=$9,750
The cost of costs sold will be
100 units from beg. inventory =100 x 100
125 units from the batch of 200 = 125 x 130
=(100 x 100) + (125 x130)
=10,000 +16, 250
=$26, 250
(2) LIFO
last in , last out, units from the beginning inventory will be sold last
cost of the ending inventory
= 75 units x $100
= $7, 500
cost of goods sold
= ($200 x 130 ) + (25 x 100)
=$26,000 + $ 2,500
=$28,500
3) average-cost method
Average cost of inventory will be
100 x100 = $10,000
200 x 130 = $ 26,000
total units = 300 units costing $36,000( 10,000 + 26,000)
Average cost = $36,000/ 300
=$120
cost of the ending inventory
= 80 units x $120
= $9,600
cost of goods sold
= opening stock+ purchases - closing stock
=100 +200-75
225 units at $120
cost = 225 X 120
=$27,000
