91Ó°ÊÓ

Under FIFO, the earliest inventories are issued first. So the latest inventories remain in the closing inventory list.

Based on this, the schedule for ending inventory of 1,600 units based on FIFO would be as follow –

So the value of ending inventory under FIFO is $18,000.

Under LIFO, the latest inventories are issued first. So the earliest inventories remain in the ending inventory list.

Based on this, the schedule for ending inventory of 1,600 units based on LIFO would be as follow –

So the value of ending inventory under LIFO is $13,800.

Under the weighted average method, the cost of ending inventory is computed based on the average cost for all inventory.

$\begin{array}{rcl}\mathrm{Average}\mathrm{cost}& =& \frac{\mathrm{Total}\mathrm{Inventory}\mathrm{value}}{\mathrm{Total}\mathrm{units}}\\ & =& \frac{\$44,600}{4,500}\\ & =& \$9.91\end{array}$

$\begin{array}{rcl}\mathrm{Value}\mathrm{of}\mathrm{ending}\mathrm{inventory}& =& \mathrm{Average}\mathrm{cost}×\mathrm{Ending}\mathrm{Inventory}\left(\mathrm{units}\right)\\ & =& \$9.91×1,600\\ & =& \$15,856\end{array}$