Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 7 units $50
Feb. 17 Purchase 15 units $52
July 21 Purchase 11 units $54
Nov. 23 Purchase 16 units $55
There are 7 units of the item in the physical inventory at December 31. The periodic inventory system is used.
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 weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.