# Inventory Costing Methods-Periodic MethodThe Lippert Company uses the periodic inventory system. The following Julydata are for an item in Lippert's inventory:July 1 Beginning inventory 30 units o \$9 per unit10 Purchased15 Sold26 Purchased50 units \$10 per unit60 units25 units @ \$11 per unitCalculate the cost of goods sold for July and ending inventory at July 31 using(a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average costmethods. Round your final answers to the nearest dollar.

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Step 1

Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically is referred to as periodic inventory system.

Step 2

(a).

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

Hence, cost of goods sold is \$570, and ending inventory is \$475, under FIFO.

Step 3

(b).

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for...

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