Question

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	1,065 units @ $128
Feb. 17	Purchase	1,375 units @ $129
Jul. 21	Purchase	1,615 units @ $131
Nov. 23	Purchase	1,125 units @ $132

There are 1,200 units of the item in the physical inventory on December 31. The periodic inventory system is used. Do not round intermediate calculation and round final answer to the nearest whole value.

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.

Answer 1

I Accounting Tant Feb 17 1065 units @ 128 1375 units @ 129 1615 units @ 131 1125 units @ 132 July Inventory Puschase Purchase Purchase 1 I NON 23 - FIFO Method Date Opening Balance Purchase & sale I closing Balance Jan 1 1065 Feb 17 1065 R8 (136320 eutant - 128 13 6320 1315 Rg Butchasi - 171375 1065 1065 1375 I July 21 roGS 1375 | 38 129 | 13 6320 177375 1615 ) | 131 | 211565 | 1065 1375 1615 132 148500 1065 1375 R8 (136320 128 1136320 129 177375 R8 136320 T 129 I 177375 211565 I 128 13 6320 I 19 I 177375 I 131 1211565 [ 132 148500 131 I Now: 23 JOGS 1125 1375 128 136320 129 177375 1131 | 21565 11615 IRS sate RS Dee 31 | 129 1065 11375 1615 1125 136320 171375 | 24565 148500 1065 T1315 1375 790 1500 1128 | 129 Ft | 131 - 136320 1 117375 1 96940 | 201740 1131 1132 015 1125 1 131 1 132 49925 1148500

Date Page LIFO Method are same except a transaction d Au the transactions December 31 Dec. 31. Opening Balance 1065 10138 136320 1375 | R9 [111375 1615 131 24565 1125 | 132 | 148500 Purchase 240 sati 1125 132 1615 131 1240 129 Closing Balance R 136320 | R9 | 17415 & Sale 1065 148500 | 135 211565 159960 Wughted Average cost Method Date Opening Balance Puschase & sau closing Balance I T 1 Jans 1 Feb 17 loos ocel 128 128 1065 128 | 13620 1 1263ool - a 136320 1375 I - 129 - 177375 TLOGS 128 1136320 2440 128.56 3 13 695 131 211565 4oss 129.53 525260 July el 2440 128.56 313 695 1615 130.07 673760 15180 525260 125 | 132 | 14850 Nov 23 4055 129.53

Date Page Inventory cost as pes. FIFO Method to = 982st 14850 2 158325 - LIFO Method 136320 + 2 153735 17415 - hO Weighted 0 Average cost 673760 ) - Methon 2