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Question
The units of an item available for sale during the year were as follows:
| January 10 | Inventory | 27 units @ $90 |
| February 27 | Purchase | 54 units @ $98 |
| July 11 | Purchase | 63 units @ $106 |
| November 13 | Purchase | 36 units @ $115 |
There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the weighted average cost method. Show your work.
Answer
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