**Balamb Corporation Inventory Transactions** Balamb Corporation had the following transactions for the month: | | Number of Units | Unit Cost | Sales | |------------------|-----------------|-----------|-------| | Beginning inventory | 800 | $50 | | | Purchased | 600 | $52 | | | Sold | 400 | | $80 | | Sold | 350 | | $90 | | Ending inventory | 650 | | | **Instructions:** 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
First-In-First-Out: First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest costs are included in the income statement's cost of goods sold (COGS). The remaining inventory assets are matched to the assets that are most recently purchased or produced.
Last-In-First-Out: Last in, first-out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of the most recent products purchased or produced is the first to be expensed as cost of goods sold (COGS), which means the lower cost of older products will be reported as inventory.
Weighted average method: The weighted average method is an inventory costing method that assigns average costs to each piece of inventory when it is sold during the year.
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