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26 May, 07:45

Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 2,500 units at $5 Feb. 17 Purchase 3,300 units at $6 July 21 Purchase 3,000 units at $7 Nov. 23 Purchase 1,200 units at $8 There are 1,500 units of the item in the physical inventory at December 31. The periodic inventory system is used. 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. $

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  1. 26 May, 08:24
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    Instructions are listed below

    Explanation:

    Giving the following information:

    Jan. 1 Inventory 2,500 units at $5

    Feb. 17 Purchase 3,300 units at $6

    July 21 Purchase 3,000 units at $7

    Nov. 23 Purchase 1,200 units at $8

    There are 1,500 units of the item in the physical inventory on December 31.

    A) FIFO:

    Inventory = 1200 * 8 + 300*7 = $11,700

    B) LIFO

    Inventory = 1500*5 = $7,500

    C) weighted average cost method:

    Total period inventory = 2500*5 + 3300*6 + 3000*7 + 1200*8 = 62900 / 10000 units = 6.29

    Inventory = 1500*6.29 = 9,435
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