Computing Inventory Using LIFO Pools
Miller Mfg. has one LIFO pool. Information relating to the products in this pool is as follows:
|
Beginning inventory, January 1 |
60 units |
@ $10 each |
|
Purchase, February 12 |
45 units |
@ $12 each |
|
Purchase, February 28 |
75 units |
@ $18 each |
|
Purchase, March 15 |
65 units @ $1250 each |
|
|
Sales for the first quarter |
|
135 units |
Compute the ending LIFO inventory value for the first quarter assuming new layers are valued based on:
1. A FIFO assumption
2. A LIFO assumption
3. An average cost assumption