Question 1

Perpetual inventory using FIFO

The following units of a particular item were available for sale during the calendar year:

Date	Line Item Description	Units and Cost
Jan. 1	Inventory	4,000 units at $50
Apr. 19	Sale	2,500 units
June 30	Purchase	4,500 units at $54
Sept. 2	Sale	5,000 units
Nov. 15	Purchase	2,000 units at $56

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

FIFO Method

Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Goods Sold Quantity	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Jan. 1							fill in the blank 1	fill in the blank 2	fill in the blank 3
Apr. 19				fill in the blank 4	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9
June 30	fill in the blank 10	fill in the blank 11	fill in the blank 12				fill in the blank 13	fill in the blank 14	fill in the blank 15
June 30							fill in the blank 16	fill in the blank 17	fill in the blank 18
Sept. 2				fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Sept. 2				fill in the blank 25	fill in the blank 26	fill in the blank 27
Nov. 15	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
Nov. 15							fill in the blank 34	fill in the blank 35	fill in the blank 36
Dec. 31	Balances					fill in the blank 37			fill in the blank 38

Question 2

Perpetual inventory using LIFO

The following units of a particular item were available for sale during the calendar year:

Date	Line Item Description	Units and Cost
Jan. 1	Inventory	4,000 units at $50
Apr. 19	Sale	2,500 units
June 30	Purchase	4,500 units at $54
Sept. 2	Sale	5,000 units
Nov. 15	Purchase	2,000 units at $56

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column.

LIFO Method

Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Goods Sold Quantity	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Jan. 1							fill in the blank 1	fill in the blank 2	fill in the blank 3
Apr. 19				fill in the blank 4	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9
June 30	fill in the blank 10	fill in the blank 11	fill in the blank 12				fill in the blank 13	fill in the blank 14	fill in the blank 15
June 30							fill in the blank 16	fill in the blank 17	fill in the blank 18
Sept. 2				fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Sept. 2				fill in the blank 25	fill in the blank 26	fill in the blank 27
Nov. 15	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
Nov. 15							fill in the blank 34	fill in the blank 35	fill in the blank 36
Dec. 31	Balances					fill in the blank 37			fill in the blank 38

Question 3

Periodic inventory by three methods

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

Date	Line Item Description	Units and Cost
Jan. 1	Inventory	5,500 units at $4
Feb. 17	Purchase	6,400 units at $6
July 21	Purchase	6,000 units at $8
Nov. 23	Purchase	2,100 units at $10

There are 1,500 units of the item in the physical inventory at December 31. The periodic inventory system is used.

a. Determine the inventory cost by the first-in, first-out method. fill in the blank 1 of 3$

b. Determine the inventory cost by the last-in, first-out method. fill in the blank 2 of 3$

c. Determine the inventory cost by the weighted average cost method. Round average unit cost to two decimal places. fill in the blank 3 of 3$