Question

Question 4 Cine 360 400 59 40 mm CO

Answer 1

Solution :

Cost assigned on average cost basis = $ 904.

Cost assigned on FIFO basis = $ 990.

Cost assigned on LIFO basis = $ 680

.

Working :

Average Cost Basis :

Cost on Average Cost Basis = (Total Cost / Total Unit) * Ending Inventory

= ( $ 3,260 / 595) * 165

= $ 904

FIFO Basis :

Cost on FIFO Basis = 165 Units * $ 6

= $ 990

LIFO Basis :

Cost on LIFO Basis = (155 Units * $ 4) + ( 10 Units * $ 6)

= $ 680

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