Question

Periodic inventory by three methods The units of an item available for sale during the year were as follows: 2,500 units at $4 Jan 1 Inventory Feb. 17 Purchase 2,900 units at $5 Jul 21 Purchase 2,500 units at $6 Nov Purchase 23 2,100 units at $7 There are 2,400 units of the item in the physical inventory at December 31. The periodic inventory system is used. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the inventory cost by the first-in, first-out method. Round your answer to the nearest dollar. b. Determine the inventory cost by the last-in, first-out method. Round your answer to the nearest dollar. c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar 4A-

Answer 1

	Unit	Unit Cost	Total Cost
Beginning inventory	2500	4	10000
Purchase 1	2900	5	14500
Purchase 2	2500	6	15000
Purchase 3	2100	7	14700
Total	10000		54200

a) Ending inventory under FIFO = (2100*7+300*6) = 16500

b) Ending inventory under LIFO = 2400*4 = 9600

c) Ending inventory under weighted average cost = 54200/10000*2400 = 13008