Question

Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 10 units at $32 Feb. 17 Purchase 15 units at $33 Jul. 21 Purchase 17 units at $34 Nov. 23 Purchase 5 units at $35 There are 9 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. a. Determine the inventory cost by the first-in, first-out method. $ b. Determine the inventory cost by the last-in, first-out method. $ c. Determine the inventory cost by the weighted average cost method. $

Answer 1

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Jan. 1 Inventory 10 units at $32

Feb. 17 Purchase 15 units at $33

Jul. 21 Purchase 17 units at $34

Nov. 23 Purchase 5 units at $35

There are 9 units of the item in the physical inventory on December 31.

A) FIFO (first-in, first-out)

Inventory= 5*35 + 4*34= $311

B) LIFO (last-in, first-out)

Inventory= 9*32= $41

C) Weighted average cost method

Total Cost= 10*32 + 15*33 + 17*34 + 5*35= $1,568

Total units= 47 units

Weighted average cost= 1568/47= $33.36

Inventory= 33.36*9= $300.24