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

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:

There are 19 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).

Jan. 1 Inventory 4 units at $44 $176 Aug. 7 Purchase 11 units at $46 506 Dec. 11 Purchase 16 units at $47 752 31 units $1,434

Explanation / Answer

a First-in, first-out (FIFO) =(16*47)+(3*46)= 890 b Last-in, first-out (LIFO) =(4*44)+(11*46)+(4*47)= 870 c Average cost = 1434/31= 46.26 Weighted average cost =19*46.26= 879

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.