The following lots of Commodity Z were available for sale during the year. Beginning inventory 10 units at $49 First purchase 15 units at $55 Second purchase 53 units at $55 Third purchase 18 units at $57 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?

$1,205

Explanation:

Given:

Beginning inventory = 10 units at $49

First purchase = 15 units at $55

Second purchase = 53 units at $55

Third purchase = 18 units at $57

Ending inventory of commodity is 23 units

Total purchases = 10 + 15 + 53 + 18 = 96 units

So, units of commodity Z sold = 96 - 23 = 73

Since, LIFO method is used, last commodity purchased would be sold first.

So, after selling 73 units, 13 units at $55 and 10 units at $49 is left as ending inventory.

Value of ending inventory = 13 × 55 + (10 × 49)

                                            = $1,205

years agooo ahaha. but honestly they need to update ! : )

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.