Question: Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
10 units @ $47
15 units @ $49
17 units @ $51
16 units @ $52
There are 29 units of the item in the physical inventory of December 31. The periodic inventory system is used. Determine the inventory cost under each of the following methods. Round interim calculations and the final answer to the nearest whole dollar.
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 average cost method.
FIFO ending inventory cost = 16*52 = $832 (Ans.)
Remember that the first units in (the oldest ones) are sold first; therefore, we leave the newest units for ending inventory.
TutorTeddy.com & Boston Predictive Analytics
[ Email your Statistics or Math problems to email@example.com (camera phone photos are OK) ]
Boston Office (Near MIT/Kendall 'T'):
Cambridge Innovation Center,
One Broadway, 14th Floor,
Cambridge, MA 02142,
Dallas Office (Near Galleria):
15950 Dallas Parkway,
Dallas, TX 75248,