The following units are available for sale during the year: January 1 Beginning Inventory 10 units at $18 each
April 3 Purchase 30 units at $20 each
August 31 Purchase 28 units at $25 each
September 29 Purchase 17 units at $30 each
December 31 Ending Inventory 21 units
Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Instructions are below.

Explanation:

Giving the following information:

January 1 Beginning Inventory 10 units at $18 each

April 3 Purchase 30 units at $20 each

August 31 Purchase 28 units at $25 each

September 29 Purchase 17 units at $30 each

Ending Inventory= 21 units

First, we need to calculate the ending inventory using the FIFO (first-in, first-out) method.

The ending inventory is calculated using the cost of the last units incorporated into inventory.

Ending inventory= 17*30 + 4*25= $610

Now, we need to calculate the ending inventory using the LIFO (last-in, first-out) method.

The ending inventory is calculated using the cost of the firsts units incorporated into inventory.

Ending inventory= 10*18 + 11*20= $400

Finally, we need to calculate the ending inventory using the weighted-average inventory method.

average cost= (18 + 20 + 25 + 30)/4= $23.25

Ending inventory= 21*23.25= $488.25