Question

Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,035 units @ $130 1,425 units @ $132 Feb. 17 Purchase 1,525 units @ $133 Jul. 21 Purchase 1,145 units @ $134 Nov. 23 Purchase There are 1,220 units of the item in the physical inventory at December 31. The periodic inventory system is used. Do not round intermediate calculation and round final answer to 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

FIFO
Date	Units	Rate	Amount
1-Jan	1035	130	$ 134,550.00
17-Feb	185	132	$    24,420.00
	1220		$ 158,970.00

LIFO
Date	Units	Rate	Amount
23-Nov	1145	$ 134.00	$ 153,430.00
21-Jul	75	$ 133.00	$      9,975.00
	1220		$ 163,405.00

Weighted Average
Units	Rate	Amount
1035	$ 130.00	$ 134,550.00
1425	$ 132.00	$ 188,100.00
1525	$ 133.00	$ 202,825.00
1145	$ 134.00	$ 153,430.00
5130	$ 132.34	$ 678,905.00
1220	$ 132.34	$      161,455