Question

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

Jan. 1	Inventory	17	units at $27	$459
July 7	Purchase	13	units at $30	390
Nov. 23	Purchase	15	units at $31	465
		45	units	$1,314

There are 27 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

Answer 1

Under FIFO method
Ending Inventory in hand	27 Units	Comments
Cost of 15 units	465	Purchased on Nov 23
Cost of 12 units	360	Purchased on July 7
Inventory Value	825
Under LIFO method
Ending Inventory in hand	27 Units	Comments
Cost of 17 units	459	Opening Inventory
Cost of 10 units	300	Purchased on July 7
Inventory Value	759
Weighted Average Cost
Date	Qty	Amount
1st Jan	17	459
7th July	13	390
23rd Nov	15	465
Total	45	1314
Weighted Average Cost per unit	29.2
Ending Inventory Value	788.4