Question

eriodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method.

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

Jan. 1	Inventory	10	units at $39	$390
Aug. 13	Purchase	17	units at $40	680
Nov. 30	Purchase	13	units at $41	533
Available for sale		40	units	$1,603

There are 16 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).

a.	First-in, first-out (FIFO)	$
b.	Last-in, first-out (LIFO)	$
c.	Weighted average cost	$

Answer 1

a)

FIFO

Inventory Cost $950

Purchase Date	Units Purchased	Price per Unit	Cost of Goods Purchased	Units Sold	Units Remaining	Cost of Goods Sold	Inventory Value
Opening Jan 1	10	39	390	10	0	390	0
Aug 13	17	40	680	14	3	560	120
Nov 30	13	41	533	0	13	0	533
Total	40		1603	24	16	950	653

b)

LIFO

Inventory Cost

$973

Purchase Date	Units Purchased	Price per Unit	Cost of Goods Purchased	Units Sold	Units Remaining	Cost of Goods Sold	Inventory Value
Opening Jan 1	10	39	390	0	10	0	390
Aug-13	17	40	680	11	6	440	240
Nov-30	13	41	533	13	0	533	0
Total	40		1603	24	16	973	630

c)

Weighted average cost

Inventory Cost $961.80

Purchase Date	Units Purchased	Price per Unit	Cost of Goods Purchased	Units Sold
Opening Jan 1	10	39	390
Aug-13	17	40	680
Nov-30	13	41	533
Total	40		1603	24
	Weighted average cost
	1603/40
	40.075/Unit
	Inventory Value= 40.075*24
	961.80