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Periodic Inventory by Three Methods The units of an item available for sale during the year...

Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

Jan. 1   Inventory 19 units at $29
Feb. 17   Purchase 9 units at $30
Jul. 21   Purchase 17 units at $31
Nov. 23   Purchase 10 units at $33

There are 11 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.

a. Determine the inventory cost by the first-in, first-out method.
$

b. Determine the inventory cost by the last-in, first-out method.
$

c. Determine the inventory cost by the weighted average cost method.
$

Solutions

Expert Solution

  • [a] Ending inventory cost = $ 361

FIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

19

$                29.00

$                            551.00

19

$               29.00

$                     551.00

0

$                 29.00

$                         -  

Purchases:

17-Feb

9

$                30.00

$                            270.00

9

$               30.00

$                     270.00

0

$                 30.00

$                         -  

21-Jul

17

$                31.00

$                            527.00

16

$               31.00

$                     496.00

1

$                 31.00

$                  31.00

23-Nov

10

$                33.00

$                           330.00

0

$               33.00

$                              -  

10

$                 33.00

$                330.00

TOTAL

55

$                        1,678.00

44

$                 1,317.00

11

$                361.00

  • [b] Ending inventory cost = $ 319

LIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

19

$                29.00

$                            551.00

8

$               29.00

$                     232.00

11

$                 29.00

$                319.00

Purchases:

17-Feb

9

$                30.00

$                            270.00

9

$               30.00

$                     270.00

0

$                 30.00

$                         -  

21-Jul

17

$                31.00

$                            527.00

17

$               31.00

$                     527.00

0

$                 31.00

$                         -  

23-Nov

10

$                33.00

$                            330.00

10

$               33.00

$                     330.00

0

$                 33.00

$                         -  

TOTAL

55

$                        1,678.00

44

$                 1,359.00

11

$                319.00

  • [c] Ending inventory cost = $ 336

Average Method

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

19

$                29.00

$                            551.00

Purchases:

17-Feb

9

$                30.00

$                            270.00

21-Jul

17

$                31.00

$                            527.00

23-Nov

10

$                33.00

$                            330.00

TOTAL

55

$            30.5091

$                        1,678.00

44

$          30.5100

$                 1,342.44

11

$            30.5100

$                335.61


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