Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units
ID: 2520113 • 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 17 units at $34 $578
July 7 Purchase 19 units at $36 684
Nov. 23 Purchase 20 units at $38 760
56 units $2,022
There are 17 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).
Explanation / Answer
FIFO Date Particulars Units Cost Amount COGS Jan 01 Beginning Inventory 17.00 34.00 578.00 Jul 07 Purchase 19.00 36.00 684.00 Nov 23 Purchase 20.00 38.00 760.00 Total 56.00 36.11 2,022.00 COGS 39.00 1,376.00 17*34+19*36+3*38 Ending Inventory 17.00 646.00 17*38 COGS 1,376.00 Ending Inventory 646.00 LIFO Date Particulars Units Cost Amount COGS Jan 01 Beginning Inventory 17.00 34.00 578.00 Jul 07 Purchase 19.00 36.00 684.00 Nov 23 Purchase 20.00 38.00 760.00 Total 56.00 36.11 2,022.00 COGS 39.00 1,444.00 20*38+19*36 Ending Inventory 17.00 578.00 17*34 COGS 1,444.00 Ending Inventory 578.00 Weighted Average Date Particulars Units Cost Amount COGS Jan 01 Beginning Inventory 17.00 34.00 578.00 Jul 07 Purchase 19.00 36.00 684.00 Nov 23 Purchase 20.00 38.00 760.00 Total 56.00 36.11 2,022.00 COGS 39.00 36.11 1,408.18 23971*13.30 Ending Inventory 17.00 36.11 613.82 COGS 1,408.18 Ending Inventory 613.82
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