Periodic Inventory by Three Methods; Cost of Merchandise Sold
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 50 units @ $110
Mar. 10 Purchase 60 units @ $118
Aug. 30 Purchase 10 units @ $124
Dec. 12 Purchase 80 units @ $128
There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used.
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Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations and final answers to the nearest whole dollar.
Schedule of Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method
Merchandise Inventory
Merchandise Sold
FIFO
LIFO
Average cost