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

Jan. 1	Inventory	1,000 units at $120
Feb. 17	Purchase	1,375 units at $128
July 21	Purchase	1,500 units at $136
Nov. 23	Purchase	1,125 units at $140

There are 1,200 units of the item in the physical inventory on 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.

Answer rating: 100% (QA)

FIFO FirstIn FirstOut Method The FIFO method assumes that the first items purchased are the first items sold Heres how to calculate the inventory cost ... View the full answer