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Social ScienceInventory 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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Inventory Costing Methods-Periodic Method The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory: July 1 Beginning inventory 30 units o $9 per unit 10 Purchased 15 Sold 26 Purchased 50 units $10 per unit 60 units 25 units @ $11 per unit Calculate 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 cost methods. Round your final answers to the nearest dollar.
Expert Answer
Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically is referred to as periodic inventory system.
(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.
(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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