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	15	units at $26	$390
Aug. 7	Purchase	20	units at $27	540
Dec. 11	Purchase	12	units at $29	348
		47	units	$1,278

There are 20 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	$

PLEASE SHOW WORK

Answer 1

a. Cost of ending inventory as on 31 December using periodic FIFO method

Ending Inventory = (12*29)+(8*27)

Ending inventory = $348+$216

Ending inventory = $564

b. Cost of ending inventory as on 31 December using periodic LIFO method

Ending Inventory = (15*26)+(5*27)

Ending Inventory = $390+$135

Ending Inventory = $525

c. Cost of ending inventory as on 31 December using periodic weighted average method

Weighted average cost per unit = cost of goods available for sale/Total no of units available for sale

Weighted average cost per unit = 1,278/47

Weighted average cost per unit = 27.19

Ending Inventory = 20*27.19

Ending Inventory = $544