Valuing Physical Inventory

Opening inventory on the first of the month : 9 cans @ $10.20 91.80

Purchased on the 7th of the month : 20 cans at $10.35 $207.00
Purchased on the 15th of the month : 30 cans at $10.35 $310.50
Purchased on the 26th of the month : 10 cans at $10.20 $102.00
Total value of purchases $619.50
Add value of opening inventory $91.80
Value of total number of units available $711.30

Inventory
Opening Inventory 9
+ Purchase during the month 60
= Total available 69
- Closing Inventory 20
=Units Consumed 49
Actual Purchase
Price Method

6 $10.20 $ 61.20
8 $10.35 $ 82.80
6 $10.20 $ 61.20
20 cans $ 205.20

FIFO
10 $ 10.35 $ 103.50
10 $ 10.20 $ 102.00
$ 205.50

WEIGHTED
711.30/69 $ 10.31

20 @ 10.31 $ 206.20

LATEST
20 @ 10.20 $ 204.00

LIFO
9 @ 10.20 $ 91.80
11 @ 10.35 $ 113.85
20cans $ 205.65
Comparison Tab

Actual Weighted Latest

Purchase FIFO Average Purchased LIFO
Price Price

Opening Inventory $ 91.80 $ 91.80 $ 91.80 $ 91.80 $ 91.80

Purchases $ 619.50 $ 619.50 $ 619.50 $ 619.50 $ 619.50
Total Available $ 711.30 $ 711.30 $ 711.30 $ 711.30 $ 711.30
Closing Inventory $ 205.20 $ 205.50 $ 206.20 $ 204.00 $ 205.65
Cost of Food $ 506.10 $ 505.80 $ 505.10 $ 507.30 $ 505.65

What is the best method to use from an accounting perspective and why?

We prefer tomake of use the latest purchase price because we want to pay less taxes in business. Aside from that we don't w
side from that we don't want to be change our formula for valuing physical inventory monthly.
inventory turnover

average inventory 11000+ 11200

2
average inventory $11,100.00

Inventory Turnover 22950/ 11,100

$ 2.07
Cost of Food Tab

Opening Inventory $11,000.00

Closing Inventory $11,200.00
Cooking Liquor $200.00
Food to bar $200.00
Steward Sales $150.00
Gratis to bar $300.00
Promotion expenses $500.00
Cost of employees' meals $1,400.00
Purchase during the month $25,500.00

Average Inventory/Inventory turnover Tab

Opening inventory $11,000.00

purchase during the month $25,500.00
total available $36,500.00
closing inventory $11,200.00
cost of food issue $25,300.00
cooking liquor $200.00
sub-total $25,500.00
food to bar $200.00
steward sales $150.00
gratis to bar $300.00
promotion expenses $500.00
total subtraction $1,150.00
cost of food consumption $24,350.00
cost of employees meal $1,400.00
cost of food sold $22,950.00