The units of an item available for sale during the year were as follows: Jan, 1 Inventory 2,500 units at $3 Feb. 17 Purchase 2,900 units at $5 Jul. 21 Purchase 3,100 units at $7 Nov. 23 Purchase 1,500 units at $9 There are 2,100 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. Open spreadsheet a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost be the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar. Feedback Check My Work a. Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of tems in last purchase laver in less than
The units of an item available for sale during the year were as follows: Jan, 1 Inventory 2,500 units at $3 Feb. 17 Purchase 2,900 units at $5 Jul. 21 Purchase 3,100 units at $7 Nov. 23 Purchase 1,500 units at $9 There are 2,100 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. Open spreadsheet a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost be the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar. Feedback Check My Work a. Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of tems in last purchase laver in less than
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:lodic inventory by three methods
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 2,500 units at $3
Feb. 17
Purchase 2,900 units at $5
Jul. 21 Purchase
3,100 units at $7
Nov. 23 Purchase 1,500 units at $9
There are 2,100 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.
X
Open spreadsheet
a. Determine the inventory cost by the first-in, first-out method.
b. Determine the inventory cost be the last-in, first-out method.
c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar.
Feedback
Check My Work
a. Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the
period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than
the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost
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