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 50 units @ $102

Mar. 10 Purchase 70 units @ $112

Aug. 30 Purchase 30 units @ $116

Dec. 12 Purchase 50 units @ $120

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 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 $
01-Jan	50	102	5100	50	102	5100
Purchasse
10-Mar	70	112	7840	70	112	7840
30-Aug	30	116	3480	20	116	2320	10	116	1160
12-Dec	50	120	6000				50	120	6000
TOTAL	200		22420	140		15260	60		7160
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Jan	50	102	5100				50	102	5100
Purchasse
10-Mar	70	112	7840	60	112	6720	10	112	1120
30-Aug	30	116	3480	30	116	3480
12-Dec	50	120	6000	50	120	6000
TOTAL	200		22420	140		16200	60		6220
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 $
01-Jan	50	102	5100
Purchasse
10-Mar	70	112	7840
30-Aug	30	116	3480
12-Dec	50	120	6000
TOTAL	200	112.10	22420	140	112.1	15694	60	112.1	6726
			FIFO	LIFO	Average
Cost of Ending inventory	7160	6220	6726
Cost of Merchandise sold	15260	16200	15694