The units of an item available for sale during the year were as follows:
|
Jan. 1 |
Inventory |
168 units at $60 |
|
Apr. 15 |
Purchase |
232 units at $65 |
|
Sept. 3 |
Purchase |
80 units at $68 |
|
Nov. 23 |
Purchase |
120 units at $70 |
There are 140 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods, presenting your answers in the following form:
|
|
Cost |
|
|
|
Inventory Method |
Merchandise Inventory |
Merchandise Sold |
|
|
a. |
First in, first out |
$ |
$ |
|
b. |
Last in, first out |
|
|
|
c. |
Average cost |
|
|