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	14	units at $35	$490
Aug. 7	Purchase	17	units at $38	646
Dec. 11	Purchase	12	units at $40	480
		43	units	$1,616

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)	$fill in the blank 1
b.	Last-in, first-out (LIFO)	$fill in the blank 2
c.	Weighted average cost	$fill in the blank 3

Answer 1

• Requirements asked

	Ending Inventory
FIFO	$                      632
LIFO	$                      566
Weighted Average	$                      601

• Workings

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	14	$                35.00	$                            490.00	14	$               35.00	$                     490.00	0	$                 35.00	$                         -
Purchases:
07-Aug	17	$                38.00	$                            646.00	13	$               38.00	$                     494.00	4	$                 38.00	$                152.00
11-Dec	12	$                40.00	$                            480.00	0	$               40.00	$                              -	12	$                 40.00	$                480.00
TOTAL	43		$                        1,616.00	27		$                     984.00	16		$                632.00
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	14	$                35.00	$                            490.00	0	$               35.00	$                              -	14	$                 35.00	$                490.00
Purchases:
07-Aug	17	$                38.00	$                            646.00	15	$               38.00	$                     570.00	2	$                 38.00	$                  76.00
11-Dec	12	$                40.00	$                            480.00	12	$               40.00	$                     480.00	0	$                 40.00	$                         -
TOTAL	43		$                        1,616.00	27		$                 1,050.00	16		$                566.00

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	14	$                35.00	$                            490.00
Purchases:
07-Aug	17	$                38.00	$                            646.00
11-Dec	12	$                40.00	$                            480.00
TOTAL	43	$            37.5814	$                        1,616.00	27	$          37.5800	$                 1,014.66	16	$            37.5800	$                601.28