The Beginning Inventory and Purchases of an Item for the Period

question 155

Essay

The beginning inventory and purchases of an item for the period were as follows:? $\begin{array}{ll}\text { Beginning inventory } & 6 \text { units at } \$ 70 \text { each } \\\text { First purchase } & 10 \text { units at } \$ 75 \text { each } \\\text { Second purchase } & 18 \text { units at } \$ 80 \text { each } \\\text { Third purchase } & 10 \text { units at } \$ 90 \text { each }\end{array}$ The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations:
(a) first-in, first-out;
(b) last-in, first-out;
(c) average cost. Do not round your intermediate calculations. Round your final answer to two decimal places.

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Definitions:

Negative Reinforcement

The strengthening of a behavior because it removes or diminishes a negative outcome.

Positive Reinforcement

The process of encouraging a particular behavior by offering a reward or positive outcome following that behavior.

Secondary Reinforcement

A form of reinforcement that involves the use of a stimulus that has acquired its reinforcing properties through its association with a primary reinforcer.

Punishment

In behaviorism, an intervention that decreases the likelihood of the behavior that it follows by introducing an unpleasant stimulus or outcome.