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Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...

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

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Expert Solution

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)

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