Show Me How LIFO, and Weighted Average Cost Methods The units of an item availab
ID: 2544174 • Letter: S
Question
Show Me How LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: $282 833 408 $1,523 1 Inventory6 units at $47 17 units at $49 8 units at $51 31 units July 7 Purchase Nov. 23 Purchase system is used. Determine the inventory cost using (o) the There are 9 units of the item in the physical inventory at December 31. The periodic inventory first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost places and your final answer to the nearest whole dollar). method (round per unit cost to two decimal a. First-in, first-out (FIFO) b. When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases cost of merchandis DesktopExplanation / Answer
Units available for sale:
Jan 1 Inventory 6 units * $47 = $282
July 7 Purchases 17 units * $49 = $833
Nov 23 Purchases 8 units * $51 = $408
31 units = $1523
Weighted average cost per unit = $1523 / 31 units
= $49.1290
Units available 31 units
Ending inventory units 9 units
Units in sale 22 units
FIFO:
Cost of goods sold:
6 units * $47 = $282
16 units * $49 = $784
$1066
Ending inventory:
1 unit * $49 = $49
8 units * $51 = $408
$457.
LIFO:
Cost of goods sold:
8 units * $51 = $408
14 units * $49 = $686
$1094
Ending inventory:
6 units * $47 = $282
3 units * $49 = $147
$429.
Weighted average cost method:
Weighted average cost per unit = $1523 / 31 units
= $49.1290
Cost of goods sold :
22 units * $49.1290 = $1080.84
Ending inventory:
9 units * $49.1290 = $442.161.