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 7 units at $50 $350 July 7 Purchase 14 units at $53 742 Nov. 23 Purchase 16 units at $54 864 37 units $1,956 There are 18 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

Correct Answer:

	FIFO	LIFO	Weighted Average
Ending inventory	$         970	$              933	$                 952

Working:

FIFO
FIFO	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jan	7	$          50.00	$                 350	7	$ 50.00	$       350	0	$      50.00	$                     -
Purchase
7-Jul	14	$          53.00	$                 742	12	$ 53.00	$       636	2	$      53.00	$                  106
23-Nov	16	$          54.00	$                 864		$ 54.00	$          -	16	$      54.00	$                  864
Total	37		$              1,956	19		$       986	18		$                  970

LIFO
	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1/1/2020	7.00	50.00	$           350.00		$ 50.00	$          -	7	$      50.00	$                  350
Purchase
7-Jul	14.00	53.00	$           742.00	3	$ 53.00	$       159	11	$      53.00	$                  583
23-Nov	16.00	54.00	$           864.00	16	$ 54.00	$       864	0	$      54.00	$                     -
Total	37		$        1,956.00	19		$   1,023	18		$                  933

Weighted Average
Weighted Average	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jan	7.00	50.00	$                 350			$          -			$                     -
Purchase						$          -
7-Jul	14.00	53.00	$                 742			$          -			$                     -
23-Nov	16.00	54.00	$                 864			$          -			$                     -
				19	$    52.86	$   1,004			$                     -
Total	37		$        1,956.00	19	52.86	$   1,004	$          18	$ 52.86	$                  952

End of answer.

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