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The beginning inventory balances of Item X on August 1 and the purchases of the item during the month of August were as follows:
August1 Beginning Inventory 600 units @ $10.00 = $6,000
9 Purchase 700 units @ $10.50 = $7,350
11 Purchase 500 units @ $11.00 = $5,500
23 Purchase 200 units @ $11.25 = $2,250
31 Total - 2,000 $21,100
At August 31, the ending inventory was 900 units. Determine the cost of the ending inventory based on each of the following methods of inventory valuation. show computation
a.Last-in, first-out - $
b.First-in, first-out - $c.Average cost - $
limitations in cost plus pricing
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