Question

Calculator Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory Feb. 17 Purchase July 21 Purchase Nov. 23 Purchase 1,000 units at $120 1,375 units at $128 1,500 units at $136 1,125 units at $140 There are 1,200 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. 168,000 X く) b. Determine inventory cost by the last-in, first-out method. 145,600 c. Determine the inventory cost by the weighted average cost method Feedback firnt units purchased are assumed to be

Answer 1

Answer:

Answer is given below.

Explanation:

a) FIFO method (1125* 140+75 136)

ending inventory 167700

b) LIFO method   (1000*120+200*128)

ending Inventory 145600

c) Av.rue cost rethd

ending Inventory 157800

(1200131.5)

*average cost 131.50

(1000*120+1375*128+1500136+1125*140)/(1000+1375+1500+1125)