# Akira Company had the following transactions for the month. Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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Section
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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 10, Problem 5EA
Textbook Problem
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## Akira Company had the following transactions for the month.Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations.A. first-in, first-out (FIFO)B. last-in, first-out (LIFO)C. weighted average (AVG)

To determine

Concept introduction:

FIFO (First in first out): In FIFO Method, company issues that material first, which is purchased earliest. This method provides highest gross margin in case of inflation.

Requirement-1:

To calculate:

Ending inventory as per FIFO method.

### Explanation of Solution

Ending inventory as per FIFO= cost per unit × No of units remaining in end

&...

To determine

Concept introduction:

LIFO (Last in first out): ): In LIFO Method, company issues first that material which comes in last in inventory. This method provides least gross margin in case of inflation.

Requirement-2:

To calculate:

Ending inventory as per LIFO method.

To determine

Concept introduction:

FIFO (First in first out): In FIFO Method, company issues that material first, which is purchased earliest. This method provides highest gross margin in case of inflation.

LIFO (Last in first out): ): In LIFO Method, company issues first that material which comes in last in inventory. This method provides least gross margin in case of inflation.

Weighted average method: In this method, we issue material on random basis, so every type of goods has equal probability.

Requirement-3:

To calculate:

Ending inventory as per weighted average method.

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