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E6-14 Inventory by three methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 54 units at
E6-14 Inventory by three methods
The units of an item available for sale during the year were as follows:
Jan. 1 | Inventory | 54 units at $1,200 |
Mar. 6 | Purchase | 108 units at $1,380 |
Jul. 14 | Purchase | 126 units at $1,560 |
Nov. 2 | Purchase | 112 units at $1,650 |
There are 90 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.
Please explain this to me as detailed as possible.
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