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	10	units at $26	$260
Aug. 7	Purchase	15	units at $28	420
Dec. 11	Purchase	10	units at $29	290
		35	units	$970

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).

Answer 1

FIFO
Date	Particulars	Units	Cost per Unit	Total Cost
Jan 1	Beginning Inventory	10	26.0	260
Aug 7	Purchase	15	28	420
Dec 11	Purchase	10	29.00	290
	Cost of Goods Available for Sale	35		970
	Less: Ending Inventory (10*29+6*28)	16		458
	Cost of Goods Sold	19		512
	LIFO (Periodic)
Date	Particulars	Units	Cost per Unit	Total Cost
Jan 1	Beginning Inventory	10	26.0	260
Aug 7	Purchase	15	28	420
Dec 11	Purchase	10	29.00	290
	Cost of Goods Available for Sale	35		970
	Less: Ending Inventory (10*26+6*28)	16		428
	Cost of Goods Sold	19		542
Average Cost method
Date	Particulars	Units	Cost per Unit	Total Cost
Jan 1	Beginning Inventory	10	26.0	260
Aug 7	Purchase	15	28	420
Dec 11	Purchase	10	29.00	290
	Cost of Goods Available for Sale	35		970
	Less: Ending Inventory	16	27.714	443
	Cost of Goods Sold	19		527