Problem
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
|
8
|
units at $50
|
$400
|
|
Aug. 13
|
Purchase
|
19
|
units at $53
|
1,007
|
|
Nov. 30
|
Purchase
|
5
|
units at $54
|
270
|
|
Available for sale
|
32
|
units
|
$1,677
|
There are 10 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (i) first-in, first-out (FIFO) method; (ii) last-in, first-out (LIFO) method; and (iii) weighted average cost method.