FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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4.
Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
| Date | Line Item Description | Units and Cost |
|---|---|---|
| Jan. 1 | Inventory | 5 units at $42 |
| Feb. 17 | Purchase | 19 units at $43 |
| Jul. 21 | Purchase | 20 units at $45 |
| Nov. 23 | Purchase | 8 units at $45 |
There are 5 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.
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. Round average unit cost to the two decimal places, and round your final answer to the nearest dollar.
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