Struggling in my accounting class & professor will not respond to my e mails or several of my classmates =/. Taking business courses for the first time & still having trouble with this question from an old exam professor did not provide a key or explanation as to how to do FIFO & LIFO.
I found this site, but wasn’t sure if gross margin was the same process in finding ending inventory. http://faculty.cbpp.uaa.alaska.edu/afrfb/acct201/P_5_1
THE QUESTION IS:
The following data is provided for XYZ Company:
Beginning Inventory 200 units @ 10 $ 2,000
Purchase 350 units @ 15 5,250
Purchase 450 units @ 20 9,000
Purchase 700 units @ 25 17,500
Ending units in inventory are 1,250. What is the cost of ending inventory under (1) FIFO and (2) LIFO?
(1) ____________ (2) _____________