Problem:
(FIFO, LIFO, Average Cost Inventory) Shania Twain Company was formed on December 1, 2006. The following information is available from Twain's inventory records for Product BAP.
Units Unit Cost
January 1, 2007 (beginning inventory) 600 $ 8.00
Purchases:
January 5, 2007 1,200 9.00
January 25, 2007 1,300 10.00
February 16, 2007 800 11.00
March 26, 2007 600 12.00
A physical inventory on March 31, 2007, shows 1,600 units on hand.
Instructions:
Prepare schedules to compute the ending inventory at March 31, 2007, under each of the following inventory methods.
(a) FIFO. (b) LIFO. (c) Weighted average.