Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units

Question

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available for sale during the year were as follows: Jan. 1 Inventory Aug. 13 Purchase 20 units at $50 Nov. 30 Purchase 13 units at $51 Available for sale 9 units at $49 $441 1,000 42 units $2,104 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) a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost KPr Nexxt Check JMy Work Dining ans (1) doc

Explanation / Answer

Amount Per unit cost Units 01-Jan Beginning inventory 441 49 9 13-Aug Purchases 1000 50 20 30-Nov Purchases 663 51 13 Cost of goods available for sale 2104 42 Average cost 50.10 Less units sold 26 Ending inventory 16 Ending inventory Average cost 802 (50.10*16) FIFO Units Per unit Total 13 Aug purchase 3 50 150 30 nov purchase 13 51 663 Total 16 813 LIFO 1 jan inventory 9 49 441 13 Aug purchase 7 50 350 Total 16 791

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