Computation of LIFO Inventory with LIFO Pools
The Bergman Company sells three different products. Five years ago, management adopted the LIFO inventory method and established three specific pools of goods. Bergman values all incremental layers of inventory at the average cost of purchases within the period. Information relating to the three products for the first quarter of 2008 is given below.
|
|
Product 400 |
Product 401 |
Product 402 |
|
Purchases: |
|
|
|
|
January |
1,000 @ $1200 |
500 @ $25 |
5,000 @ $530 |
|
February |
1,500 @ $1250 |
250 @ $26 |
4,850 @ $538 |
|
March |
1,200 @ $1225 |
— |
3,500 @ $545 |
|
First quarter sales (units) |
2,850 |
775 |
10,750 |
|
January 1, 2008, inventory |
950 @ $1150 |
155 @ $24 |
3,760 @ $500 |
Instructions: Compute the ending inventory value for the first quarter of 2008. (Round unit inventory values to the nearest cent and final inventory values to the nearest dollar.)