The Units of an Item Available for Sale During the Year

question 53

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.

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Definitions:

FASB Technical Bulletins

Short for Financial Accounting Standards Board Technical Bulletins, these documents provide guidance on specific accounting issues.

Authoritative Support

Documentation or guidance that provides the basis for accounting policies and decisions, often issued by standard-setting bodies.

Technical Bulletins

Official communications issued to provide instructions, information, or updates on technical aspects of products or services.

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards within the United States.