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. 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.

$

Answer 1

Question-1
	Average cost = 1142/43= $26.56
a	First-in, first-out (FIFO)	527	=(14*28)+(19-14)*27
b	Last-in, first-out (LIFO)	480	=(11*24)+(19-11)*27
c	Weighted average cost	505	=19*26.56
Question-2
				Total
Item	Quantity	Unit cost	Market Value per Unit	Cost	Market	Lower of cost or market
MX62	85	58	53	4930	4505	4505
TX24	165	28	30	4620	4950	4620
Total				9550	9455	9125
	Value of the inventory = $9125