Calculate the ending inventory at May 31 using the (a) FIFO, (b) average-cost, and (c) LIFO methods.
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
May15
Purchase
25
10
250
May 24
Purchase
40
11
440
Total
95
$ 960
Instructions
Calculate the ending inventory at May 31 using the (a) FIFO, (b) average-cost, and (c) LIFO methods.(For average cost, round the average unit cost to three decimal places.) Prove the amount allocated to cost of goods sold under each method.
