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: Jan. 1 Inventory 6 units at $36 $216 Aug. 7 Purchase 20 units at $37 740 Dec. 11 Purchase 13 units at $38 494 39 units $1,450 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

	Units	Cost per unit	Total Cost
Jan-01	6	$                  36	$           216
Aug-07	20	$                  37	$           740
Dec-11	13	$                  38	$           494
	39		$        1,450

Ending Inventory 16 units	Value	Reasoning
FIFO	$ 605	3 units @ $ 37 from August 07 and 13 units @ $ 38 from Dec 11
LIFO	$ 586	6 units @ $ 36 from Jan 1 and 10 units @ $ 37 from August 07
Weighted Average	$ 595	16 units * (Total cost $ 1450 / total units 39)