FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:**Periodic Inventory by Three Methods; Cost of Merchandise Sold**
The units of an item available for sale during the year were as follows:
- **Jan. 1** Inventory: 50 units @ $100
- **Mar. 10** Purchase: 70 units @ $108
- **Aug. 30** Purchase: 30 units @ $112
- **Dec. 12** Purchase: 50 units @ $118
There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used.
Determine the inventory cost and the cost of merchandise sold by three methods. *Round interim calculations to one decimal and final answers to the nearest whole dollar.*
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**Cost of Merchandise Inventory and Cost of Merchandise Sold**
| Inventory Method | Merchandise Inventory | Merchandise Sold |
|----------------------------------|-----------------------|------------------|
| a. First-in, first-out (FIFO) | $ | $ |
| b. Last-in, first-out (LIFO) | $ | $ |
| c. Weighted average cost | $ | $ |
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