Question

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: 40 units $116 Jan. 1 Inventory 60 units $128 Mar. 10 Purchase 30 units @ $132 Aug. 30 Purchase 70 units @ $136 Purchase Dec. 12 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest Determine the inventory cost and the c0st whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Merchandise Inventory Merchandise Sold Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Next Previous

Answer 1

Answer . 40 + 60 +30 + 70 Units available for scule = = 200 units Ending inventory units = 80 units Units sold 200 - 80 = 120 unit U FIFO method :- Go x sl) + (10 X 134) cost of Ending inventory = = $ 10,840. cost of goods sold = Cox $116) + ( 60x $128) + (20x $132) = $14,960 (21 LIFO melhod :- cost of ending inventory = Cuo x $116) + (40 x $128) $ 97760 cost of goods sold = Fox $136)+ ( 30x $ 132) + (20 x $128) = $16000

-3 Weighted average cost method :- for selle sale Average cost per unit cost of goods available units available for = 2 uox $116) + (60x$128) +(30x $132)+(70x $136) (40 +60 + 30 +7o) $ 25,800 200 units = $129 per unit as cost of Ending mventory = '80 units x $129 = $10,320 cost of goods sold - 120 units X $ 129 = $15, uso Exa