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:

Jan. 1	Inventory	9	units at $41	$369
Aug. 7	Purchase	16	units at $43	688
Dec. 11	Purchase	12	units at $45	540
			37 units	1597

There are 17 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

Answer 1

Periodic: FIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost Per Cost of Cost Per Ending Unit Goods Sold # of Units Unit Inventory 41 369 041 ol 411 cost of Goods # of Units # of Units Cost Per Unit Available for sales sold Beginning onventory 9 369 Purchases Aug-07 16 4 3 688 Dec-11] 12 45 540 Totals | 37| 1 597| Periodic : LIFO Goods Purchasd 11 0 20 43 45 473 0 842| 5 12 17| 43 45 | 215 540 755 Cost of Goods Sold Inventory Balance Unit Inventor cost of Goods # of Units Cost Per Cost of Cost Per Ending # of Units Cost Per Unit Available for sales sold Unit Goods Sold # of Units Unit Inventory Beginning onventory 369 41 369 Purchases Aue-071 161 43 688 8 4 3 344 8 43 344 Dec-11 12 4554012455400450 Totals 37 159720 8 8417 713 Periodic: Weighted Average Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods # of Units Ending Cost Per # of Units Cost Per Unit Cost of Cost Perl Available for sales # of Units Unit sold Goods Sold Beginning onventory 9 4 1 369 Purchases Aug-07 16 43 1 688 Dec-11012 4 5 540 Totals 37 43.16| 1597 43.16| 863| 17| 43.160 734 Weighted Average Unit Cost = (1597/37) 43.16 Answers Invenotry cost FIFO 755 Invenotry cost LIFO 713 Invenotry cost Weighted Average 734 20