Question

eBook Show Me How Calculator Periodic Inventory Using FIFO, UFO, and Weighted Average Cost Method. The units of an item available for sale during the year were as follows: Jan. 1 Inventory 14 units at $32 $448 Aug. 13 Purchase 16 units at $34 544 Nov. 30 Purchase 10 units at $36 360 Available for sale 40 units $1.352 There are 20 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 (LFO) 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

a. First-in, First out method b. Last-in, First out method c. Weighted average cost method S $ $ 700 652 676 Notes: a FIFO Method : Ending Inventory Particulars Aug.13 Nov.30 Units Total Unit Cost $ 34 S 36 $ $ $ 340 360 20 700 b. LIFO Method : Ending Inventory Particulars Jan. 1 inventory Aug.13 Units Total 448 Unit Cost $ 32S $ 34 $ $ 204 20 652 c. Weighted Avearge Unit Cost Unit Cost = $1,352/40 = $33.8 Ending Inventory = 20*$33.8 = $676