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 Inventory30 units @ $116

Mar. 10 Purchase60 units @ $124

Aug. 30 Purchase20 units @ $132

Dec. 12Purchase90 units @ $138

There are 60 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 MethodMerchandise InventoryMerchandise Sold

First-in, first-out (FIFO):

Last-in, first-out (LIFO):

Weighted average cost:

Answer 1