Periodic Inventory by Three Methods;

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

Jan. 1 Inventory 40 units @ $110

Mar. 10 Purchase 60 units @ $122

Aug. 30 Purchase 30 units @ $126

Dec. 12 Purchase 70 units @ $130

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Merchandise Inventory and Cost of Merchandise Sold

Inventory Method Merchandise Inventory Merchandise Sold

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

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

c. Weighted average cost