Analyze the following scenario: The Hospital for Ordinary Surgery uses pharmaceuticals for its patients. It started the year on January 1, with an inventory of 1,000 doses of an antibiotic drug that cost $17 per dose. On January 2, it purchased another 300 does for $21 each. From January 3 through June 30 it used 800 doses. On July 1, it bought 500 more doses at $23 each. From July 2 through the end of the year it used 400 doses. What is the inventory value at the end of the year, assuming FIFO? What is the value assuming LIFO?

1000*17 = 17000
300*21 = 6300
17000+6300=23,300-800=22,500+11,500(500*23)=34,000-400=33,600
so Fifo ending balance = 22,500 doses antibiotic
Lifo ending balance = 33,600 doses of antibiotic
Help please am I right

Your total inventory available and the cost is incorrect. It should be 1,000 @ $17 a dose plus 300 @ $21 per dose plus 500 @ $23 a dose. Also your ending inventory is incorrect.

Now you have 1,800 doses available and you used 1,200 doses (800+ 400), which means you have 600 doses in ending inventory. Now you have to calculate the cost of the 600 doses. So under LIFO your remaining inventory cost starts with your beginning inventory cost.

So you started with 1,000 units @ $17 and your ending inventory is 600 units so you have 600 doses at $17 a dose in ending inventory for the LIFO method. You still have to calculate the total amount your 600 doses are worth and you will have your answer for the value of your ending inventory.