Perlodic Inventory Using FIFO, LIFO, and Weigtted Average Cost Methods The units

Question

Perlodic Inventory Using FIFO, LIFO, and Weigtted Average Cost Methods The units of an item available for sale during the year were as follows: an 1 Inventory 13 units at $49 Aug. 7 Purchase 11 Dec. 11 Purchase 048 $637 561 530 $1.728 03 ALGO units at $51 10 units at $53 34 units 04 ALGO There are 14 units of the tem in the physical Inventory at December 31·The periodc inventory system i, used Determine the inventory cost using (a) the first-in, first-eut (F1FO) method: (b) the last-in, first-ost (LIFO) method; and (e) the weighted average coot method tround per unit coct to two decimal places and your final answer to the nearest whole dallar). First -in,first-out (FEFO) Last-in, first out (UFO Weighted average cest 734 b. 688 S712 X c. a. when the FIrO method is used, costs are included in cost of merchandise cold in the order is adich they were purchased b. When the L3FO method is used, the cost of the units sold is the cost of the most recent purchos ·The average cost method is sonatines caled the weighted average method. The netage cet method "ney the averaga unit cost for determining cost of merchandise sold ard the erding merchandise investory Previous Next

Explanation / Answer

Under weighted avg valuation of inventiory -

Sold unit = opening + purchase - closing

= 13+21 - 14

= 20 unit

per unit cost = total cost / total units

= 1728 /34

= 50.82

closing inventory cost = 50.82*14 = 711.52

it is same as you have shown in your cell. and It is calculated in the same way as above.

the answer may be different if sold units under W. Avg method was on different date and in perpetual system.

Please note all values are in $.

In case of any clarification required please comment.

FIFO Date Opening Purchase COGS Closing Value purcahse price 1-Jan 13 0 0 13 637 49 7-Aug 13 11 0 24 1198 51 11-Dec 24 10 0 34 1728 53 12-Dec 34 0 20 14 734 LIFO Date Opening Purchase COGS Closing Value purcahse price 1-Jan 13 0 0 13 637 49 7-Aug 13 11 0 24 1198 51 11-Dec 24 10 0 34 1728 53 12-Dec 34 0 20 14 688

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