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	13	units at $32	$416
July 7	Purchase	7	units at $35	245
Nov. 23	Purchase	5	units at $37	185
		25	units	$846

There are 7 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

Calculate ending inventory under following method

a	First in first out (5*37+2*35)	$255
b	Last in first out (7*32)	$224
c	Weighted average cost (846/25*7)	$237