Question

Periodic Inventory by Three Methods; Cost of MerchandiseSold

The units of an item available for sale during the year were asfollows:

Jan. 1	Inventory	40 units @ $116
Mar. 10	Purchase	70 units @ $126
Aug. 30	Purchase	30 units @ $134
Dec. 12	Purchase	60 units @ $140

There are 80 units of the item in the physical inventory atDecember 31. The periodic inventory system is used.

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Determine the inventory cost and the cost of merchandise sold bythree methods. Round interim calculations to one decimal and finalanswers to the nearest whole dollar.

Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method		Merchandise Inventory		Merchandise Sold
First-in, first-out (FIFO)		$		$
Last-in, first-out (LIFO)
Weighted average cost