Problem-
Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost, (b) FIFO, and (c) LIFO.
Assume that a periodic inventory system is used.
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1
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Beginning inventory
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225 items @ $3 =
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$ 675
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May
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1
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Purchases
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675 items @ $6 =
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4,050
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Totals
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900 items
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$4,725
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Total sales
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450 items
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31
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Ending inventory
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450 items
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Additional information-
This problem belongs to Accounting and computes the cost to be assigned to ending inventory under method of average-cost.