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    candaycanes's Avatar
    candaycanes Posts: 3, Reputation: 1
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    #1

    Mar 13, 2009, 04:26 PM
    Determine the ending inventory under a perpetual inventory system
    Hi ! I've honestly spent a long time trying to figure this out, but I keep getting the answer wrong and I'm not sure how I should go about this question. I'm not asking for you to just give me the answer, if you have time to give a little explanation that would be nice so I could understand what I'm doing :) thanks !
    asastring's Avatar
    asastring Posts: 13, Reputation: 3
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    #2

    Mar 13, 2009, 06:30 PM

    try this:
    Fifo - first in first out first example.

    7/1 - 7 @ $93
    7/6 - sold 3
    4 @ $93 remain
    7/11 - 4 @ $99
    7/14 - sold 3 (@ $93)
    7/21 - 3 @ $106
    7/26 - sold 5 (1 @ $93, 4 @ $99)

    Looks like you have ending inventory of 3 @ $106

    Lifo - last in first out

    7/1 7@ $93
    sold 3 @ $93, remaining 4 @ $93

    7/11 - 4 @ $99
    7/14 - sold 3 @ $99, remaining 1 @ $99

    7/21 - 3 @ $106
    7/27 - sold 3@ $106, sold 1 @ $99, sold 1 @ $93-
    Inventory 3 @ $99

    Average cost

    average cost of 14 units is $1365 / 14 = $97.50
    3 units left = $292.50
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