The Units of an Item Available for Sale During the Year

question 4

Essay

The units of an item available for sale during the year were as follows:? $$\begin{array} { | l l | l | l | } \hline \text { January } & 10 & \text { Inventory } & 27 \text { units } @ \$ 90 \\\hline \text { February } & 27 & \text { Purchase } & 54 \text { units } @ \$ 98 \\\hline \text { July } & 11 & \text { Purchase } & 63 \text { units } @ \$ 106 \\\hline \text { November } & 13 & \text { Purchase } & 36 \text { units } @ \$ 115 \\\hline\end{array}$$ 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 average cost method. Show your work.

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Definitions:

Transporting Goods

The process of moving products or materials from one place to another by road, rail, sea, or air.

Receipt

A written or electronic acknowledgement that a specific exchange, transaction, or delivery has occurred.

Mutual Benefit

A situation or agreement in which all parties involved gain or benefit from the arrangement.

Bailee

An individual or entity that has temporary possession of the personal property of another with the obligation to protect and return it.