Pertodic Inventory by Three Methods The units of an item available for sale duri

Question

Pertodic Inventory by Three Methods The units of an item available for sale during the year were as follows Jan. 1 Inventory Feb. 17 Purchase Jul. 21 Purchase 8 units $29 13 units e $30 11 units o $32 6 units e $34 Nov. 23 Purchase There are 23 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to one decimal and final answers to the nearest whole dolar, if required. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method.

Explanation / Answer

Schedule :

a) Inventory cost under FIFO = (352+204+6*30) = $736

b) Inventory cost under LIFO = (232+390+2*32) = $686

c) Inventory cost under weighted average = (1178/38*23) = $713

Unit Cost Inventory 8 232 Purchase 13 390 Purchase 11 352 Purchase 6 204 Total 38 1178

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