Arrow Company is a retailer that uses the perpetual inventory system.

August 1 Beginning inventory 80 units of Product A @ $1,600 total cost
5 Purchased 100 units of Product A @ $2,116 total cost
8 Purchased 200 units of Product A @ $4,416 total cost
11 Sold 170 units of Product A @ $4,800 total sale
Calculate the inventory cost of item A on August 11 (after the sale) using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.

Under FIFO method the cost of goods sold are considered from the opening inventory and the first purchases. The inventory on hand is from the last purchases.

The inventory on hand of 210 units, of which 200 units are from August 11 and 10 units from the purchases of August 5.

The average unit cost of Aug 11 purchases is $ 4,416/ 200 units = $ 22.08

The average unit cost of Aug 05 purchases is $ 2,116 /100 units = $ 21.16

200 units * $ 22.08 = $ 4,416.00

10 units * $ 21.16 = $ 211.60

$ 4627.60 say $ 4,628

Computation on inventory cost under LIFO method

Under LIFO method the cost of goods sold are considered from the last purchases and the inventory on hand is from the opening inventory and first purchases.

The inventory on hand of 210 units is as follows

Opening inventory 80 units $ 1,600

Purchases August 5 100 units $ 2,116

Purchases August 11 30 units@ $22.08 $ 662.40

Inventory under LIFO Method $ 4,378.40

Computation on inventory cost under Weighted Average method

The weighted average cost of inventory is 210 units * $ 21.40 = $ 4,494