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Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: an. 1 Inventory 1 Feb. 17

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Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: an. 1 Inventory 1 Feb. 17 Purchase Jul. 21 Purchase Nov. 23 Purchase 1,100 units$124 1,415 units$125 1,690 units$126 1,140 units $128 There are 1.215 units of the item in the physical inventory at December 31. The periodic inventory system is used. Do not round intermediate calculation and round final answer to nearest whole value. a. Determine the inventory cost by the first-in, first-out method. 155,370 b. Determine the inventory cost by the last-in, first-out method. 150,775 V c. Determine the inventory cost by the weighted average cost method 152,786. X Feedback a. Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price the number o items in ast purchase layer is less than the number in ending inventory the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale b. Note that this exercise uses the periodic inventory system. LIFO means the last units purchased are assumed to be the first to be sold. Therefore the ending inventory for the period is made up of the earliest costs from the period (the beginning inventory). If the number of units in the ending inventory is greater than the units in the beginning inventory, the excess units will be recorded at the next oldest cost cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale with the first purchase. The c. Note that this exercise uses the periodic inventory system. Weighted average unit cost means the average unit cost of all available units purchased is applied to the number of units sold and those in ending inventory. Therefore you must first obtain a unit cost by dividing the total cost of all units available for sale by the number of units available for sale. Then multiply the number of items remaining in the physical inventory times this unit cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale

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