Tool City, Inc. had 300 cordless screwdrivers on hand at January 1, 2015 costing $45.00 each. Purchases and sales of cordless screw drivers during the month of January were as follows.
Date /Purchases /Sales
January 9 Sales = 200@$75
January 14 Purchases = 100@$47
January 23 Sales = 75@$76
January 25 Purchases = 100@$48
Janurary 30 Sales = 75@$77
Tool City does not maintain perpetual inventory records. According to a physical count, 150 cordless screwdrivers were on hand at January 31, 2015.
a. What is the cost of the inventory at January 31, 2015 under the FIFO method?
b. What is the cost of the inventory at January 31, 2015 under the LIFO method?
c. What is the cost of the inventory at January 31, 2015 under the FIFO method if only 145 cordless screwdrivers were on hand at the time of the phyical count?
Note: Please, provide clear, logical description of whether or not he or she should accept the project, along with 4 to 6 steps to used make this decision.