4, BE·06-05. ALGO (Algorithmic) Periodic Inventory Using FIFO, LIFO, and Weighte

Question

4, BE·06-05. ALGO (Algorithmic) Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available for sale during the year were as follows: Jan. 1 Inventory 15 units at $29 Aug. 13 Purchase 17 units at s32 Nov. 30 Purchase 11 units at $34 Available for sale 43 units $435 544 374 $1,353 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 (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

Explanation / Answer

Calculate value of ending inventory

a) First in First out = (11*34+9*32) = $662

b) Last in first out = (15*29+5*32) = $595

c) Weighted average cost = (1353/43) = 31.47*20 = $629

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