Answer:
Instructions are listed below
Explanation:
Giving the following information:
Jan. 1 Inventory 2,500 units at $5
Feb. 17 Purchase 3,300 units at $6
July 21 Purchase 3,000 units at $7
Nov. 23 Purchase 1,200 units at $8
There are 1,500 units of the item in the physical inventory on December 31.
A) FIFO:
Inventory= 1200* 8 + 300*7= $11,700
B) LIFO
Inventory= 1500*5= $7,500
C) weighted average cost method:
Total period inventory= 2500*5 + 3300*6 + 3000*7 + 1200*8= 62900/ 10000 units= 6.29
Inventory= 1500*6.29= 9,435
The inventory cost by the first-in, first-out method is $11,700.
The inventory cost by the last-in, first-out method is $7,500.
The inventory cost by the weighted average cost method is $9435.
First in, first out means that it is the first purchased inventory that is the first to be sold. Inventory cost would be the cost of the last purchased inventory.
Inventory cost = (1200 x $8) + (300 x $7)
= $9600 + $2100 = $11,700
Last in first out means that it is the last purchased inventory that is the first to be sold. Ending inventory would consist of the earliest purchased inventory.
Inventory cost = 1500 x $5 = $7500
Weighted cost =[ (2500 x 5) + (3300 x 6) + (3000 x 7) + (1200 x 8)] / 10,000 = $6.29
Inventory cost = $6.29 x 1500 = $9435
To learn more about FIFO, please check: https://brainly.com/question/294129
