The units of an item available for sale during the year were as follows
| Inventory | |||
| Jan. 1 | 21 units at $1,800 | ||
| May-15 | Purchase | 29 units at $1,950 | |
| Aug. 7 | Purchase | 10 units at $2,040 | |
| Nov. 20 | Purchase | 15 units at $2,100 |
There are 18 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods, presenting your answers in the following form:
Cost
Merchandise Merchandise
Method Inventory Sold
- a. First in, first out
- b. Last in, first out
- c. Average cost
,
Darshita Changed status to publish August 13, 2020
Answer:
| Method | Inventory | Cost of Sold | |
| a. | FIFO | $37,620 | $108,630 |
| b. | LIFO | 32,400 | 1,13,850 |
| c. | Average cost | 35,100 | 1,11,150 |
Darshita Changed status to publish August 13, 2020
