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 40 units at $165 $6,600
Aug. 13 Purchase 200 units at $180 $36,000
Nov. 30 Purchase 60 units at $200 $12,000
Available for sale 300 units $54,600

There are 75 Units of the item in the physical inventory at December 31. The periodic inventory system is used.
Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method.

Instructions are listed below.

Explanation:

Giving the following information:

Jan. 1: Inventory 40 units at $165

Aug. 13: Purchase 200 units at $180

Nov. 30: Purchase 60 units at $200

Available for sale 300 units

There are 75 Units of the item in the physical inventory on December 31.

1) FIFO (first-in, first-out)

The cost of ending inventory is the cost of the last units bought.

Ending inventory= 60*200 + 15*180= $14,700

2) LIFO (last-in, first-out)

The cost of the ending inventory is the cost of the first units bought.

Ending inventory= 40*165 + 35*180= $12,900

3) Weighted-average:

Weighted average price= (165 + 180 + 200)/3= 181.67

Ending inventory= 181.67*75= $13,625.25

its simple as this, microeconomics is the study of economics at an individual, group or company level, macroeconomics on the other hand, is the study of a national economy as a whole.

hope it =^-^=

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this