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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: There
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
The units of an item available for sale during the year were as follows:
There are units of the item in the physical inventory at December The periodic inventory system is used. Determine the inventory cost using the a firstin firstout
FIFO method; b lastin firstout LIFO method; and c weighted average cost method round perunit cost to two decimal places and your final answer to the
nearest whole dollar
a Firstin firstout FIFO
b Lastin firstout 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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