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: $198 Jan. 1 Aug. 13 Nov. 30 Inventory Purchase Purchase 6 units at $33 13 units at $34 442 19 units at $36 684 Available for sale 38 units $1,324 There are 11 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) 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) 4 4 b. Last-in, first-out (LIFO) C. Weighted average cost 4

Answer 1

Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of Goods Cost Per Ending of Units cost of Goods Available for sales #of Units Cost Per Unit Inventory Cost Per Unit Sold Unit sold # of Units Beginning onventory Purchases 6 33 198 6 33 198 0 33 0 Aug-13 13 34 442 13 34 442 34 Nov-30 288 19 36 684 8 36 11 36 396 Totals 38 1324 27 928 11 396 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of Goods Cost Per Ending #of Units cost of Goods # of Units Cost Per Unit Available for sales Unit Inventory sold Cost Per Unit Sold # of Units Beginning onventory| 6 33 198 0 33 0 6 33 198 Purchases 170 Aug-13 5 13 34 442 8 34 272 34 Nov-30 19 36 684 19 36 684 0 36 Totals 956 38 1324 27 11 368

Periodic: Weighted Average Goods Purchasd Cost of Goods Sold Inventory Balance # of Cost of cost of Goods Available for sales Cost Per Ending Inventory Units sold #of Units Cost Per Unit Cost Per Unit Goods Sold # of Units Unit Beginning onventory 6 33 198 Purchases Aug-13 13 Nov-30 19 34 36 442 684 Totals 34.84000 38 34.84 1324 27 941 11 34.84 383 Weighted Average Unit Cost (1324/38) 34.84 Answers 396 Invenotry cost FIFO LIFO 368 Invenotry cost Weighted Average Invenotry cost 383