Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units
ID: 2568554 • 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:
There are 7 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 $41 $164 Aug. 7 Purchase 5 units at $42 210 Dec. 11 Purchase 15 units at $44 660 24 units $1,034Explanation / Answer
FIFO Date Particulars Units Cost Amount COGS 1-Jan Beginning Inventory 4.00 41.00 164.00 7-Aug Purchase 5.00 42.00 210.00 11-Dec Purchase 15.00 44.00 660.00 Total 24.00 1,034.00 COGS 17.00 726.00 4*41+5*42+8*44 Ending Inventory 7.00 308.00 7*44 COGS 726.00 Ending Inventory 308.00 LIFO Date Particulars Units Cost Amount COGS 1-Jan Beginning Inventory 4.00 41.00 164.00 7-Aug Purchase 5.00 42.00 210.00 11-Dec Purchase 15.00 44.00 660.00 Total 24.00 1,034.00 COGS 17.00 744.00 15*44+2*42 Ending Inventory 7.00 290.00 3*42+4*41 COGS 744.00 Ending Inventory 290.00 Weighted Average Date Particulars Units Cost Amount COGS 1-Jan Beginning Inventory 4.00 41.00 164.00 7-Aug Purchase 5.00 42.00 210.00 11-Dec Purchase 15.00 44.00 660.00 Total 24.00 43.08 1,034.00 COGS 17.00 43.08 732.42 Ending Inventory 7.00 43.08 301.58 COGS 732.42 Ending Inventory 301.58
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