# Periodic Inventory by Three Methods; Cost of Merchandise SoldThe units of an item available for sale during the year were as follows:Jan. 1Inventory50 units @ \$106Mar. 10Purchase60 units @ \$118Aug. 30Purchase20 units @ \$122Dec. 12Purchase70 units @ \$124There 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.  Cost of Merchandise Inventory and Cost of Merchandise SoldInventory MethodMerchandise InventoryMerchandise SoldFirst-in, first-out (FIFO)\$\$Last-in, first-out (LIFO)  Weighted average cost

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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 @ \$106 Mar. 10 Purchase 60 units @ \$118 Aug. 30 Purchase 20 units @ \$122 Dec. 12 Purchase 70 units @ \$124

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.

 Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) \$ \$ Last-in, first-out (LIFO) Weighted average cost
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Step 1

Compute total units and units sold in the period as shown below:

Step 2

Compute cost of merchandise inventory and merchandise sold under LIFO method as shown below:

Step 3

Compute cost of merchandise inventory and merchandise sold unde...

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