(Alternative Inventory Methods—Comprehensive) Belanna Corporation began operations on December 1, 2012. The only inventory transaction in 2012 was the purchase of inventory on December 10, 2012, at a cost of $20 per unit. None of this inventory was sold in 2012. Relevant information is as follows.
Ending inventory units
December 31, 2013, by purchase date
During the year, the following purchases and sales were made.
300 units at $24
300 units at 25
200 units at 28
100 units at 30
The company uses the periodic inventory method.
(a) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average cost. (Round unit cost to four decimal places.)
(b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2013, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base-layer priced at $20 per unit.)