Informatian about Thompson Company\'s Inventory of ane lam tollws 2D5 225 175 30
ID: 2601141 • Letter: I
Question
Informatian about Thompson Company's Inventory of ane lam tollws 2D5 225 175 305 August 312 . Compute the cost of the anding Invantory undar the average cost method. (Rlound your "average ooct per unit anewert to 2 deolmial plaoes.J Average Coct umber Unit ooct Total ooctunit oo per unit Average Number ofAvera0Total ooct ooct per unlt unit Unlt ooct Total ooct Number of units Baginning inventory Apri August October 0.00 2. Computo the cost of the ending inventory undor the FIFO mothod Ending Inventory Number ofUnit coat Toai ood FIFO Numbeer of unteUnit ooct Total port [Number of Meronendite braiable for cas Humper or unit ooct Tetal scet Number of Unit otiroat cottExplanation / Answer
1. Average cost Method Average Cost Merchandise available for sale Ending Inventory No. of units Unit cost Total cost No. of units Average cost per unit Total Cost Beginning Inventory 165 $300 $49,500 Purchases: April 205 $305 $62,525 August 225 $310 $69,750 October 175 $312 $54,600 Total 770 1227 $236,375 165 = $ 236,375 / 1227 $31,786.37 $192.64 2. FIFO Method FIFO Merchandise available for sale Ending Inventory No. of units Unit cost Total cost No. of units Average cost per unit Total Cost Beginning Inventory 165 $300 $49,500 Purchases: April 205 $305 $62,525 August 225 $310 $69,750 October 175 $312 $54,600 165 $312 $51,480 Under FIFO Method units beginning and produced first are sold first, so whatever ending inventory is left will be taken at unit cost of last lot of prouction only which is in October. 3. LIFO Method LIFO Merchandise available for sale Ending Inventory No. of units Unit cost Total cost No. of units Average cost per unit Total Cost Beginning Inventory 165 $300 $49,500 Purchases: April 205 $305 $62,525 August 225 $310 $69,750 October 175 $312 $54,600 165 $300 $49,500 Under LIFO Method units produced last are sold first, so whatever ending inventory is left will be taken at unit cost of beginning inventory only.