Answer :
a. Number of pens in stock is 31
b. The cost of ending inventory under LIFO is $66.87
The cost of ending inventory under FIFO is $90.30
The cost of ending inventory under weighted-average methods is $80.43
What is the Ending Inventory?
The value of products still in stock and held by a corporation at the end of an accounting period is known as ending inventory.
How to calculate the Ending Inventory?
Beginning inventory + new purchases - the cost of goods sold (COGS) = ending inventory.
Types of methods to calculate :
1) FIFO Method: It is a technique utilized by accountants during times of economic instability and presupposes that the goods you purchased initially were the ones that sold first.
2) LIFO Method: It is assumed that the first items to be sold are those that were most recently purchased.
3) Weighted-average method: By dividing the entire cost by the amount of inventory you have in your stockroom, it provides an average of how much each stock-keeping unit (SKU) is worth.
Here we have,
a. Pens in stock = pens bought - pens sold
(16 + 8 + 14 + 13 + 9 ) - 29
60 - 29 = 31
b. Cost of Ending inventory using LIFO = (16 X 2.12) + (8 X 2.15) + (7 x 2.25)
= $33.92 +$17.20 + $15.75 = $66.87
Cost of Ending inventory using FIFO = (13 x $3.20) + (14 x 3.05) + (4 x $2.25)
$41.60 + $42.7 +9 = $93.30
Cost of Ending inventory using the weighted-average method = Weighted average = total value of inventory/number of inventory purchased
{(2.15 x 8) + (9 x 2.25) + (14 x 3.05) + (13 x 3.20) + (16 x 2.12) } / 60
= (17.2 + 20.25 + 42.7 + 41.6 + 33.92) / 60
= $155.67 / 60
= 2.59
Cost of ending inventory = $2.59 x 31 = $80.43
Hence,
a. The Number of pens in stock is 31
b. The cost of ending inventory under LIFO is $66.87
The cost of ending inventory under FIFO is $90.30
The cost of ending inventory under weighted-average methods is $80.43
To learn more about Ending Inventory from the given link
https://brainly.com/question/29287297
#SPJ1
