Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units
ID: 1155395 • Letter: P
Question
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
The units of an item available for sale during the year were as follows:
There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar).
Jan. 1 Inventory 9 units at $26 $234 Aug. 7 Purchase 18 units at $28 504 Dec. 11 Purchase 10 units at $29 290 37 units $1,028Explanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 9 26 234 9 26 234 Purchasse 7-Aug 18 28 504 12 28 336 6 28 168 11-Dec 10 29 290 10 29 290 TOTAL 37 1028 21 570 16 458 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 9 26 234 9 26 234 Purchasse 7-Aug 18 28 504 11 28 308 7 28 196 11-Dec 10 29 290 10 29 290 TOTAL 37 1028 21 16400 16 430 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 9 26 234 Purchasse 7-Aug 18 28 504 11-Dec 10 29 290 TOTAL 37 27.78 1028 21 27.78 583.38 16 27.78 444.48 Ending Inventory FIFO 458 LIFO 430 AVERAGE 444.48