Rogers Products uses a periodic inventory system. The company’s records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows.               Jan. 1 Beginning inventory   11 units @ $ 3.00   $ 33.00   Feb. 23 Purchase   14 units @ $ 3.50     49.00   Apr. 20 Purchase   28 units @ $ 3.80     106.40   May 4 Purchase   40 units @ $ 4.00     160.00   Nov. 30 Purchase   18 units @ $ 5.00     90.00     Totals   111 units         $ 438.40       A physical count indicates 24 units in inventory at year-end.   Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round your intermediate and final answers to 2 decimal places.)                             ending inventory                                                                                  Average cost   FIFO   LIFO

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Rogers Products uses a periodic inventory system. The company’s records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows.

 

           
Jan. 1 Beginning inventory   11 units @ $ 3.00   $ 33.00  
Feb. 23 Purchase   14 units @ $ 3.50     49.00  
Apr. 20 Purchase   28 units @ $ 3.80     106.40  
May 4 Purchase   40 units @ $ 4.00     160.00  
Nov. 30 Purchase   18 units @ $ 5.00     90.00  
  Totals   111 units         $ 438.40  
 

 

A physical count indicates 24 units in inventory at year-end.

 

Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round your intermediate and final answers to 2 decimal places.)

 

 

                        ending inventory                                                                                 

Average cost

 

FIFO

 

LIFO

 

 

 

Expert Solution
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LIFO means last in first out where as FIFO means first in first out.

Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis.

In LIFO , cost of goods sold is valued at latest price and closing inventory at oldest price.

In FIFO , cost of goods sold is valued at oldest price and closing inventory at latest price.

In weighted average , an average price is calculated by taking quantity as weight and cost of goods sold and closing inventory is valued at that price.

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