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)

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

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

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

c. Weighted-average: (Show your work)

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

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