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 4 units at $4,200 $16,800 Aug. 7 Purchase 15 units at $4,300 64,500 Dec. 11 Purchase 13 units at $4,400 57,200 32 units $138,500 There are 18 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) 78,700 V b. Last-in, first-out (LIFO) 77,000 V C. Weighted average cost Feedback Check My Work a. When the FIFO method is used, costs are included in cost of merchandise sold in the order in which they were purchased. b. When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases. C. The average cost method is sometimes called the weighted average method. The average cost method uses the average unit cost for determining cost of merchandise sold and the ending merchandise inventory.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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I IBM Learning = Copy of Jacqueline.
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
4 units at $4,200
$16,800
Aug. 7
Purchase
15 units at $4,300
64,500
Dec. 11
Purchase
13 units at $4,400
57,200
32 units
$138,500
There are 18 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)
$ 78,700 V
b.
Last-in, first-out (LIFO)
77,000 V
Weighted average cost
C.
Feedback
Check My Work
a. When the FIFO method is used, costs are included in cost of merchandise sold in the order in which they were purchased.
b. When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases.
c. The average cost method is sometimes called the weighted average method. The average cost method uses the average
unit cost for determining cost of merchandise sold and the ending merchandise inventory.
2:26 AM
(?
10/24/2020
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home
+ backspace
Transcribed Image Text:I IBM Learning = Copy of Jacqueline. 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 4 units at $4,200 $16,800 Aug. 7 Purchase 15 units at $4,300 64,500 Dec. 11 Purchase 13 units at $4,400 57,200 32 units $138,500 There are 18 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) $ 78,700 V b. Last-in, first-out (LIFO) 77,000 V Weighted average cost C. Feedback Check My Work a. When the FIFO method is used, costs are included in cost of merchandise sold in the order in which they were purchased. b. When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases. c. The average cost method is sometimes called the weighted average method. The average cost method uses the average unit cost for determining cost of merchandise sold and the ending merchandise inventory. 2:26 AM (? 10/24/2020 delete home + backspace
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