Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units
ID: 2575380 • Letter: P
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:
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).
Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
There are 26 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 dollar, 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.
$
FIFO and LIFO Costs Under Perpetual Inventory System
The following units of an item were available for sale during the year:
The firm uses the perpetual inventory system, and there are 12 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO?
$
b. What is the total cost of the ending inventory according to LIFO?
$
Explanation / Answer
1) Calculate inventory cost under periodic method :
FIFO LIFO Weighted average metod No of units available for sale 53 53 53 cost of goods availabel for sale 1967 1967 1967 ending inventory 13*39+3*37=618 16*36=576 (1967/53)*16 =594