Question

mmentstakeAssignmentescianLocator assignment taken internet plorer plicat book Show Me How Calculator Periodic Inventory Using FTO, LIFO, and weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Aug. 7 Dec. 1t Inventory Purchase Purchase 12 units at $5,400 15 units at $6,000 15 units at $6,480 $64,800 108,000 97,200 Available for sale 45 units $270,000 There are 14 units of the item is the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first in, first-out (FFO) method; (b) the basin, fust-out (1 ) method; and (c) the weighted average cost method a First in, first-out FIFO) method b. Last first (LIFO) method Weighted average cont method When the FIFO method is used c an included in costumedads sold the order in which they were purchased Whos the method is used the cost of the unit is the cost of the most month c. The average cost method is sam e the weighted average to the comeduses the average merchants and the ending machi nary cost for de c or Merc! ideo oles Rel Pris kessforal ines of Me

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Inventory cost FIFO = No. of units in ending inventory * cost per unit as per FIFO = 14*6480 = $ 90720 3 Inventory cost LIFO = No. of units in ending inventory * cost per unit as per LIFO = (12*5400)+(2*6000) = $ 76800 1 Weighted average cost = no. of units iin ending inventory * average cost 2 = 14* (270000/45) 3 = $ 84000 90,720 5 Thus the correct answer is 6 First in First out Method 7 Last in First out Method 8 Weighted average cost method 76,800 84,000