Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods Periodic

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Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: There are 22 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the first-in, first-out (FIFO) method; the last-in, first-out (LIFO) method; and the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar). First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost

Explanation / Answer

Units Rate Value 1-Jan Inventory 15 29                       435 7-Jul Purchase 16 31                       496 23-Nov Purchase 5 33                       165 36 1096 FIFO 5 33                       165 16 31                       496 1 29                         29 Inventory under FIFO 22                       690 LIFO 15 29                       435 7 31                       217 Inventory under LIFO 22                       652 Weighted Average cost method Weighted Average cost per unit = Total purhcase cost / Total units purchased = 1,096/36 = 30.44 Value of 22 units = 22*30.44 = 669.78

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