Solution-What are the implications for values of closing

What are the implications for values of closing inventory

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Reference no: EM133176799

Question - Consider the following information.

	Units	Cost per unit	Total costs
Goods in inventory at start of year	1600	$1.20	$1920
Purchases, quarter 1	800	$1.40	$1120
Purchases, quarter 2	1000	$1.60	$1600
Purchases, quarter 3	1200	$1.80	$2160
Purchases, quarter 4	800	$2.00	$1600
	5400		$8,400

Goods sold during the year: 3000 units.

Required - Calculate the value of closing inventory and cost of sales using each of the following methods.

1. First-in first-out

2. Last-in first-out

3. Weighted average

4. The cost per unit shows a gradual increase in price of the inventory items. What are the implications for the values of closing inventory, cost of sales and profits under the FIFO and LIFO methods?

Reference no: EM133176799

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What are the implications for values of closing inventory

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Reference no: EM133176799

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