Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units
ID: 2444501 • Letter: P
Question
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at $360 $7,200 Aug. 13 Purchase 260 units at $342 88,920 Nov. 30 Purchase 40 units at $357 14,280 Available for sale 320 units $110,400 There are 57 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. a. First-in, first-out (FIFO) method $ b. Last-in, first-out (LIFO) method $ c. Weighted average cost method $
Explanation / Answer
Ans
FIFO Details Units Cost Per Unit Total Cost Jan-01 Opening Inventory 20.00 360.00 7,200.00 Aug-13 Purchase 260.00 342.00 88,920.00 Nov-13 Purchase 40.00 357.00 14,280.00 Sales 303.00 Dec-13 Closing Stock Aug-13 Lot 17.00 342.00 5,814.00 Dec-13 Closing Stock Nov-13 Lot 40.00 357.00 14,280.00 Total Closing Stock Valution under FIFO 20,094.00 LIFO Details Units Cost Per Unit Total Cost Jan-01 Opening Inventory 20.00 360.00 7,200.00 Aug-13 Purchase 260.00 342.00 88,920.00 Nov-13 Purchase 40.00 357.00 14,280.00 Sales 283.00 Dec-13 Closing Stock Aug-13 Lot 37.00 342.00 12,654.00 Dec-13 Closing Stock Jan-01 Lot 20.00 360.00 7,200.00 Total Closing Stock Valution under LIFO 19,854.00 Weighted Average Method Details Units Cost Per Unit Total Cost Jan-01 Opening Inventory 20.00 360.00 7,200.00 Aug-13 Purchase 260.00 342.00 88,920.00 Nov-13 Purchase 40.00 357.00 14,280.00 Weighted Average Cost 320.00 345.00 1,10,400.00 Sales 283.00 Dec-13 Closing Stock Aug-13 Lot 57.00 345.00 19,665.00Related Questions
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