Question

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. $ 11700

b. Determine the inventory cost by the last-in, first-out method. $ 7500

c. Determine the inventory cost by the weighted average cost method. $ _____

Answer 1

rate positively .. let me know if you need any clarification..

		Unit	rate	value
	1-Jan	2500	5	12500
	17-Feb	3300	6	19800
	21-Jul	3000	7	21000
	23-Nov	1200	8	9600
		10000	6.29	62900
	Ending inventory	1500
	Unit sold	8500
ans a	FIFO
		Unit	rate	value
	21-Jul	300	7	2100
	23-Nov	1200	8	9600
		1500		11700
ans b	LIFO
		Unit	rate	value
	1-Jan	1500	5	7500
		1500		7500
ans C	Weighted average cost
	Average cost =	=62900/10000
		6.29
		Unit	rate	value
		1500	6.29	9435