Simpson Inc. Purchased Inventory As Follows: | Delightful Discs Has The Following Inventory Data:

1.

On 5^th January, inventory purchases is 500 units X $10.00 = $5,000.

On 15^th January, purchases is 1,000 units X $15.00 = $15,000.

On 25^th January, purchases is 200 units X $20.00 = $4,000

As no units purchased are sold at the end of January, so these become ending inventory. As we know the average unit cost formula, which is shown below:

Average Unit Cost = Total Cost of Unsold Units / Total Unsold Units = $5,000 + $15,000 + $4,000 / 500 units + 1,000 units + 200 units = $24,000 / 1700 units = $14.12 per unit cost.

So, the correct option of this multiple choice question (mcq) is option (a).

 2.

On 1^st November, beginning inventory is 30 units X $6 = $180

On 8^th November, purchases is 120 units X $6.45 = $774

On 17^th November, inventory purchases is 60 units X $6.30 = $378

On 25^th Nov., another purchases of merchandise is 90 units X $6.60 = $594

On 30^th November, ending inventory is calculated under LIFO periodic inventory system as shown below:

Total units are 30 + 120 + 60 + 90 = 300 units, so we start to sold units from last item first and then to the previous till the 200 units are utilized under LIFO which is shown below:

 90 units X $6.60 = $594

60 units X $6.30 = $378

50 units X $6.45= $322.5

Cost of Goods Sold = $594 + $378 + $322.5 = $1,294

As 100 units remained unsold at the end of month of November, so under LIFO method, ending inventory is shown below:

70 units X 6.45 = $451.5

30 units X $6 = $180

Ending Inventory = $451.5 + $180 = $632

So, the correct option of this multiple choice question is (b). The other options are incorrect choices here.