Page 120 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 5

Test your understanding 6

FIFO

Issue = (500 × 1.20) + (450 × 1.30) + (50 × 1.50) = $1,260

Closing inventory = (600 + 585 + 900) – $1260 = $825

LIFO

Issue = (600 × 1.5) + (400 × 1.3) = $1,420

Closing inventory = (600 + 585 + 900) – $1,420 = $665

AVCO

Issue = (600 + 585 + 900) / (500 + 450 + 600) × 1,000 = $1,345

Closing inventory = (600 + 585 + 900) – $1,345 = $740

Test your understanding 7

A

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