Ehrhart Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Ehrhart purchased 6 units at $660 each. The company sold 2 units on January 8 and 5 units on January 15.
Instructions
Compute the ending inventory under (a) FIFO, (b) LIFO and (c) Moving-average cost.
Solution
a.
Ehrhart Appliance
FIFO Method
FIFO Method
b.
Ehrhart Appliance
LIFO Method
LIFO Method
c.
Ehrhart Appliance
Moving-average cost Method
Moving-average cost Method
