You have been working with the Humber Room Restaurant to determine the best method to value physical inventory. The following information is taken from the Humber Room Restaurant from the inventory records for the month of January:
1/1 Opening inventory 12 units @ $2.05 each
1/5 Purchased 22 units @ $2.75
1/12 Purchased 16 units @$1.75
1/19 Purchased 10 units @ $2.10
On January 31, the physical inventory indicated that 12 units remained on the shelf. The value on the shelf was 6 cans priced at $2.10 and 6 cans priced at $1.75
a.Determine the value of the closing inventory using the following methods
1.Actual purchase price method
2.FIFO
3.Last purchase price method
4.Weighted-average purchase price methodLast purchase price method
5.LIFO
b.After analyzing the physical inventory based on the five methods in part a, what method would be "best suited" for the Humber Room Restaurant? Explain your answer in full sentences