The Units of an Item Available for Sale During the Year

question 2

Essay

The units of an item available for sale during the year were as follows:
​
There are 48 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the 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.

---

Definitions:

Ending Inventory

The financial worth of goods up for sale at the termination of an accounting interval.

Cost Calculation

The process of determining the costs associated with producing a product or offering a service, considering all relevant expenses.

Periodic FIFO

An inventory valuation method where goods are sold based on the assumption that the oldest inventory items are sold first.

Ending Inventory

At the close of an accounting period, the financial worth of products available for sale, computed by starting with the inventory at the beginning, adding in purchases, and deducting the cost of goods sold.