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 14 units at $36 $504 Aug. 7 Purchase 19 units at $38 722 Dec. 11 Purchase 14 units at $40 560 47 units $1,786 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar).

(a) the first-in, first-out (FIFO) method; $1054

(b) the last-in, first-out (LIFO) method;  $998 and

(c) the weighted average cost method $760

Explanation:

FIFO

Inventory ; 13 units × $38   = $494

                  14 units × $40  = $560

Total                                    = $1054

LIFO

Inventory ; 13 units × $38   = $494

                  14 units × $36  = $504

Total                                    = $998

weighted average cost

August 7

New Cost per Unit = ((14 units × $36) + (19 units × $38)) / ( 14 units + 19 units )

                               = $37.15

December 11

New Cost per Unit = ((33 units × $37.15) + (14 units × $40))/( 33 units+14units)

                               = $38.00

Inventory Cost = 20 units × $38.00

                        = $760