There are 32 units of the item in the physical inventory at December 31. The per

Question

There are 32 units of the item in the physical inventory at December 31. The periodic inventory system is used.

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.
$                   _________________                

The units of an item available for sale during the year were as follows: There are 32 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by the first-in, first-out method. Determine the inventory cost by the last-in, first-out method. Determine the inventory cost by the weighted average cost method.

Explanation / Answer

a. first-in, first-out method

Value of 32 units in ending inventory = 24*1980 + 8*1872 =$62,496.00

b last-in, first-out method.

Value of 32 units in ending inventory= 18*1440 + 14*1656 =$49,104.00

c.weighted average cost method.

weighted average cost = (18*1440 +36*1656 +42*1872+24*1980)/(18+36+42+24) = $1764

Value of 32 units in ending inventory = 32*$1764 =$56,448.00

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