2. Calculate the value of a periodic inventory using the four cost methods:

Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each.

Units Cost per Unit

Beg. inventory, January 1 500 @ $8.25

First purchase 700 @ $8.50

Second purchase 800 @ $9.00

Third purchase 600 @ $9.50

Total 2,600

At the end of the month, ending inventory shows 700 units.

Compute the following for each of the methods:

1. Cost of goods sold

2. The cost of ending inventory

a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. (Show your work)

b. First-in, first-out (FIFO): (Show your work)

Cost of Ending Inventory	Number of Units x	Unit Cost =	Total Cost

c. Weighted-average: (Show your work)

Cost of Goods Sold	Number of Units x	Unit Cost =	Total Cost

Cost of Ending Inventory	Number of Units x	Unit Cost =	Total Cost

d. Last-in, first-out (LIFO): (Show your work)

Cost of Ending Inventory	Number of Units x	Unit Cost =	Total Cost