- a.First-in, first-out method: 1,700 units at $56 $95,200
b.Last-in, first-out method:
1,000 units at $50.00 $50,000
700 units at $52.50 36,750
1,700 $86,750c. Average cost method:
Average cost per unit: $269,0005,000 units $53.80
Inventory, December 31, 2008: 1,700 units at $53.80$91,460286 Chapter 6 Inventories
InventoryCost of
Purchases Merchandise Sold
Quantity Unit Cost Total Cost
50,000
50,000
63,000
10,000
63,000
10,000
63,000
44,000
38,50038,500
112,000
95,200
50.00
50.00
52.50
50.00
52.50
50.00
52.50
55.00
55.00
55.00
56.00
56.00
1,000
1,000
1,200
200
1,200
200
1,200
800
700
700
2,000
1,700
Date
Jan.
Mar.JuneAug.Oct.Nov.Dec.Quantity Unit Cost Total Cost40,000
10,000
63,000
5,500
38,500
16,800
50.00
50.00
52.50
55.00
55.00
56.00
800
200
1,200
100
700
300
Quantity Unit Cost Total Cost63,000
44,000
112,000
52.50
55.00
56.00
1,200
800
2,000
1
10
25
30
5
26
31
2008InventoryCost of
Purchases Merchandise Sold
Quantity Unit Cost Total Cost
50,000
50,000
63,000
50,000
21,000
50,000
21,000
44,000
35,00035,000
112,000
35,000
56,000
50.00
50.00
52.50
50.00
52.50
50.00
52.50
55.00
50.00
50.00
56.00
50.00
56.00
1,000
1,000
1,200
1,000
400
1,000
400
800
700
700
2,000
700
1,000
Date
Jan.
Mar.JuneAug.Oct.Nov.Dec.Quantity Unit Cost Total Cost42,000
44,000
21,000
15,000
56,000
52.50
55.00
52.50
50.00
56.00
800
800
400
300
1,000
Quantity Unit Cost Total Cost63,000
44,000
112,000
52.50
55.00
56.00
1,200
800
2,000
1
10
25
30
5
26
31
2008b. Last-in, first-out method: $91,000 ($35,000 + $56,000)