Question
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.
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 | 11 | units at $24 | $264 |
Aug. 7 | Purchase | 18 | units at $27 | 486 |
Dec. 11 | Purchase | 14 | units at $28 | 392 |
43 | units | $1,142 |
There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the 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 | $ |
Lower-of-Cost-or-Market Method
On the basis of the data shown below:
Item | Inventory Quantity | Cost per Unit | Market Value per Unit (Net Realizable Value) |
MX62 | 85 | $58 | $53 |
TX24 | 165 | 28 | 30 |
Determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 9.
$
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