Jan. 1 Beginning inventory 600
units @ $45 per unit
Feb. 10 Purchase 400 units @ $42 per unit
Mar. 13 Purchase 200 units @ $27 per unit
Mar. 15 Sales 800 units @ $75 per unit
Aug. 21 Purchase 100 units @ $50 per unit
Sept. 5 Purchase 500 units @ $46 per unit
Sept. 10 Sales 600 units @ $75 per unit

Totals 1,800 units 1,400 units








Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)



FIFO
LIfO
Weight average
Specific identification


I am very cnfused for weight averge I got 42.89 but it tells me I am wrong. Can you please exspain how the answers are found thanks

If a cost is an expense of doing business, would not that cost be incurred regardless of the amount of revenue. However, income taxes are levied only in those situations where a company has earned a profit. Hence they do not meet the definition of an expense, a cost incurred in order to earn profits.