Answered: The units of an item available for sale…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PB: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are...

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The units of an item available for sale during the year were as follows:

Date	Line Item Description	Value
Jan. 1	Inventory	2,900 units at $5
Feb. 17	Purchase	2,800 units at $7
Jul. 21	Purchase	3,200 units at $9
Nov. 23	Purchase	1,100 units at $11

There are 1,400 units of the item in the physical inventory at December 31. The periodic inventory system is used. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

a. Determine the inventory cost by the first-in, first-out method.
b. Determine the inventory cost by the last-in, first-out method.
c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar

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