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Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods

The units of an item available for sale during the year were as follows:

Jan. $1$

Inventory

$6$ units at $$46$

$$276$

Aug. $13$

Purchase

$5$ units at $$49$

$245$

Nov. $30$

Purchase

Available for sale

$19$ units at $$51$

$969$

$30$ units

$$1,490$

There are $18$ units of the item in the physical inventory at December $31.$ The periodic inventory system is used. Determine the inventory cost using the $($a$)$ first$-$in$,$ first$-$out $($FIFO$)$ method; $($b$)$ last$-$in$,$ first$-$out $($LIFO$)$ method; and $($c$)$ weighted average cost method $($round per$-$unit cost to two decimal places and your final answer to the nearest whole dollar$).$

a$.$ First$-$in$,$ first$-$out $($FIFO$)$

b$.$ Last$-$in$,$ first$-$out $($LIFO$)$

c$.$ Weighted average cost

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a$.$ When the FIFO method is used, costs are included in cost of goods sold in the order in which they were purchased.

b$.$ When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases.

c$.$ The average cost method is sometimes called the weighted average method. The average cost method uses the average unit cost for determining cost of goods sold and the ending inventory.

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