Question

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	40 units @ $114
Mar. 10	Purchase	70 units @ $124
Aug. 30	Purchase	30 units @ $128
Dec. 12	Purchase	60 units @ $132

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method	Merchandise Inventory	Merchandise Sold
First-in, first-out (FIFO)	$	$
Last-in, first-out (LIFO)
Weighted average cost

Answer 1

Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method	Merchandise Inventory	Merchandise Sold
First-in, first-out (FIFO)	10,480.00	14,520.00
Last-in, first-out (LIFO)	9,520.00	15,480.00
Weighted average cost	10,000.00	15,000.00
First-in, first-out (FIFO)
Date	Particulars	Units	Cost	Amount	COGS
Jan 01	Beginning Inventory	40.00	114.00	4,560.00
Mar 10	Purchase	70.00	124.00	8,680.00
Aug 30	Purchase	30.00	128.00	3,840.00
Dec 12	Purchase	60.00	132.00	7,920.00
	Total	200.00		25,000.00
	COGS	120.00		14,520.00	40*114+70*124+10*128
	Ending Inventory	80.00		10,480.00	20*128 + 60*132
Last-in, first-out (LIFO)
Date	Particulars	Units	Cost	Amount	COGS
Jan 01	Beginning Inventory	40.00	114.00	4,560.00
Mar 10	Purchase	70.00	124.00	8,680.00
Aug 30	Purchase	30.00	128.00	3,840.00
Dec 12	Purchase	60.00	132.00	7,920.00
	Total	200.00		25,000.00
	COGS	120.00		15,480.00	60*132 + 30*128+30*124
	Ending Inventory	80.00		9,520.00	40*124 + 40*114
Weighted average cost
Date	Particulars	Units	Cost	Amount	COGS
Jan 01	Beginning Inventory	40.00	114.00	4,560.00
Mar 10	Purchase	70.00	124.00	8,680.00
Aug 30	Purchase	30.00	128.00	3,840.00
Dec 12	Purchase	60.00	132.00	7,920.00
	Total	200.00	125.00	25,000.00
	COGS	120.00		15,000.00	120*125
	Ending Inventory	80.00		10,000.00	80*125