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# Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...

Periodic Inventory by Three Methods; Cost of Merchandise Sold

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

 Jan. 1 Inventory 50 units @ \$102 Mar. 10 Purchase 50 units @ \$114 Aug. 30 Purchase 30 units @ \$122 Dec. 12 Purchase 70 units @ \$128

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

 Units Unit cost Total Jan. 1 50 102 5100 Mar 10 50 114 5700 Aug. 30 30 122 3660 Dec. 12 70 128 8960 Total 200 23420 Average cost per unit 117.1 =23420/200 First-in, First-out (FIFO): Merchandise inventory 10180 =(70*128)+(80-70)*122 Merchandise sold 13240 =23420-10180 Last-in, First-out (LIFO): Merchandise inventory 8520 =(50*102)+(80-50)*114 Merchandise sold 14900 =23420-8520 Weighted Average cost: Merchandise inventory 9368 =80*117.1 Merchandise sold 14052 =23420-9368

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