1. Gray Company uses the periodic inventory system to account for inventories. Information related

to Gray Company's inventory at October 31 is given below

October 1 Beginning inventory

8 Purchase

Purchase

16

24

Purchase

Total units and cost

400 units@ $9.80 =

800 units @ $10.40=

600 units $10.80=

200 units $11.80=

2.000 units

2. Weighted Average

3 LIFO

Page

$3,920

8,320

6,480

2,360

$21.080

Instructions

1. Show computations to value the ending inventory using the FIFO cost assumption if 550 units

remain on hand at October 31.

2

Show computations to value the ending inventory using the weighted-average cost method if

550 units remain on hand at October 31.

Show computations to value the ending inventory using the LIFO cost assumtion if 550 units

remain on hand at October 31.

SHOW YOUR WORK.

1. FIFO: