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 @ $104
Mar. 10	Purchase	60 units @ $114
Aug. 30	Purchase	30 units @ $120
Dec. 12	Purchase	70 units @ $126

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

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
balance	40	104	4160	40	104	4160
Purchasse
Mar-10	60	114	6840	60	114	6840
30-Aug	30	120	3600	20	120	2400	10	120	1200
12-Dec	70	126	8820				70	126	8820
TOTAL	200		23420	120		13400	80		10020
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
balance	40	104	4160				40	104	4160
Purchasse
Mar-10	60	114	6840	20	114	2280	40	114	4560
30-Aug	30	120	3600	30	120	3600
12-Dec	70	126	8820	70	126	8820
TOTAL	200		23420	120		14700	80		8720
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
balance	40	104	4160
Purchasse
Mar-10	60	114	6840
30-Aug	30	120	3600
12-Dec	70	126	8820
TOTAL	200	117.1	23420	120	117.1	14052	80	117.1	9368
				Inventory	COGS
	FIFO			10020	13400
	LIFO			8720	14700
	Average			9368	14052