Chapter 6, Problem E6.15E

Comparing inventory methods

Learning Objective 2

1. Ending Merch. Inv. $16.30

Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first month’s milk purchases and sales at its Freeport, Florida, location follow:

Nov. 2	Purchased 11 gallons @ $2.15 each
   6	Purchases 2 gallons @ $2.80 each
 8	Sold 6 gallons of milk to a customer
13	Purchases 3 gallons @ $2.85 each
14	Sold 4 gallons of milk to a customer

Requirements

1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method.
2. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method.
3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.

Use the following information to answer Exercises E6-16 through E6-18
Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Golf Unlimited’s putters:

Date	Item	Quantity	Unit Cost
Nov. 1	Balance	24	$ 53
6	Sale	20
8	Purchase	30	70
17	Sale	30
30	Sale	2