Determine the inventory cost by the first-in, first-out method. Round your answer to the nearest dollar. $ fill in the blank 2 Determine the inventory cost by the last-in, first-out method. Round your answer to the nearest dollar. $ Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar. $
Periodic inventory by three methods
The units of an item available for sale during the year were as follows:
| Jan. | 1 | Inventory | 2,200 units at $4 | |
| Feb. | 17 | Purchase | 3,700 units at $5 | |
| Jul. | 21 | Purchase | 2,600 units at $6 | |
| Nov. | 23 | Purchase | 1,500 units at $7 |
There are 1,800 units of the item in the physical inventory at December 31. The periodic inventory system is used. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
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Determine the inventory cost by the first-in, first-out method. Round your answer to the nearest dollar.
$ fill in the blank 2
Determine the inventory cost by the last-in, first-out method. Round your answer to the nearest dollar.
$
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Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar.
$
1)
If the entity uses First in first out, then units at the opening will be used & units purchased at the end will be included in the closing stock.
Calculation of closing stock using FIFO:
| Date | Purchase units | Price |
| 1-Jan | 2200 | 4 |
| 17-Feb | 3700 | 5 |
| 21-Jul | 2600 | 6 |
| 23-Nov | 1500 | 7 |
Since FIFO is using, For closing stock out of 1800 units, 1500 units are from the purchases made on Nov 23 @ 7 per unit & remaining 300 units are from the purchases made on Jul 21 @ 6 per unit.
Calculation of closing stock:
= (1500*7)+(300*6) = $12300
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