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

EWORK Show Me How Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Feb. 17 Purchase July 21 Purchase Nov. 23 Purchase There are 220 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. Inventory 200 units at $60 275 units at $64 300 units at $68 225 units at $70 36,150x b. Determine the inventory cost by the last-in, first-out method. 12,320 x c. Determine the inventory cost by the weighted average cost method. 65.75 x 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. K the number of items in last 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 caloulated by subtracting the ending inventory from the total cost of goods Previous Next