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: Inventory 6 units at $46 $276 Jan. 1 Aug. 7 Dec. 11 20 units at $48 960 Purchase Purchase 15 units at $50 750 41 units $1,986 There are 16 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

Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of cost of Goods # of Units Goods Cost Per Ending # of Units Cost Per Unit Available for sales sold Cost Per Unit Sold # of Units Unit Inventory Beginning onventory 46 276 46. 276 0460 Purchases Aug-07 20 48 960 48 912 48 48 Dec-11 7500 500 15 50 750 Totals 41 1986 1188 798 15 50 25 16 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of cost of Goods # of Units Goods Cost Per Ending # of Units Cost Per Unit Available for sales sold Cost Per Unit Sold # of Units Unit Inventory Beginning onventory 46 461 276 Purchases Aug-07 48 960 10 48 480 10 48 480 Dec-11 750 15 50 750 0 50 Totals 1986 25 1230 16 756 6 276 0 46 0 61 20 15 50

Periodic : Weighted Average Goods Purchasd Cost of Goods Sold Inventory Balance # of Cost of cost of Goods Cost Per Ending # of Units Cost Per Unit Units Available for sales Cost Per Unit Goods # of Units Unit Inventory sold Sold Beginning onventory 6 46 276 Purchases Aug-07 20 4 8 960 Dec-11 15 750 Totals 48.44 1986 25 48.44000 1211 16 48.44 775 Weighted Average Unit Cost = (1986/41) 48.44 41 Answers Invenotry cost Invenotry cost Invenotry cost FIFO LIFO Average Cost 798 756 775