00:01
Hello students, in this question we have to compute the cost of ending inventory.
00:04
So, in the first case fifo method we need to compute.
00:09
So, it is state all that inventory are recorded at sold first.
00:12
So, cost of inventory would be based on the cost of latest purchase.
00:20
Here 16 units were left in the inventory, 5 units were bought at 40.
00:25
So, we will gonna compute cost of inventory as 5 units at 40 plus 8 units at 39 plus 3 units at 36.
00:39
So, it will give us 200 plus 312 plus 108.
00:46
So, it will be 620.
00:48
Under lifo we are computing then it is last in last out.
00:52
So, the newest inventory will be sold first.
00:56
So, here 16 inventories units are left in the inventory.
01:03
First 13 were bought at 36 twice, remaining 3 were bought at 39.
01:08
So, cost of ending inventory will be 13 at 36 price plus 3 at 39 price.
01:16
So, it will give us 460 plus 117...