Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 10 units @ $38 == Feb. 17 Purchase 4 units @ $40 July 21 Purchase 6 units @ $42 Nov. 23 Purchase 14 units @ $44 There are 10 units of the item in the physical inventory at December 31. The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.
Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 10 units @ $38 == Feb. 17 Purchase 4 units @ $40 July 21 Purchase 6 units @ $42 Nov. 23 Purchase 14 units @ $44 There are 10 units of the item in the physical inventory at December 31. The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory
Feb. 17 Purchase
July 21 Purchase
Nov. 23 Purchase
10 units @ $38
4 units @ $40
6 units @ $42
14 units @ $44
There are 10 units of the item in the physical inventory at December 31. The periodic inventory system is used.
a. Determine the inventory cost by the first-in, first-out method.
b. Determine the inventory cost by the last-in, first-out method.
c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.
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