Question

Inventory by Three Methods;

Cost of Merchandise Sold The units of an item available for saleduring the year were as follows:

Jan. 1 Inventory 40 units @ $92 each

Mar. 10 Purchase 40 units @ $104 each

Aug. 30 Purchase 20 units @ $108 each

Dec. 12 Purchase 100 units @ $114 each

There are 80 units of the item in the physical inventory atDecember 31. The periodic inventory system is used. Determine theinventory cost and the cost of merchandise sold by three methods,presenting your answers in the form below. Round the average costper unit to the nearest cent and round your final answers to thenearest whole dollar.

Cost

Merchandise Merchandise

InventoryMethod Inventory Sold

a. FIFO..........................

b. LIFO.........................

c. Average cost.........