Let's solve each part step by step: --- ## Inventory Data | Date | Description | Units | Unit Cost | |-----------|-------------|-------|-----------| | Jan. 1 | Inventory | 7 | $46 | | Feb. 17 | Purchase | 8 | $47 | | Jul. 21 | Purchase | 15 | $48 | | Nov. 23 | Purchase | 9 | $50 | **Total units available:** 7 + 8 + 15 + 9 = **39 units** **Physical inventory at year-end:** **7 units** --- ### a. First-In, First-Out (FIFO) FIFO assumes the oldest inventory items are sold first. So, the ending inventory consists of the newest purchases. **Ending Inventory (7 units):** - Take the most recent purchase(s) first. 1. Nov. 23: 9 units @ $50 → Use 7 units @ $50 \[ \text{Ending Inventory} = 7 \text{ units} \times \$50 = \$350 \] **Answer:** **a. $350** --- ### b. Last-In, First-Out (LIFO) LIFO assumes the newest inventory items are sold first. So, the ending inventory consists of the oldest items. **Ending Inventory (7 units):** - Take the oldest inventory first. 1. Jan. 1: 7 units @ $46 → Use 7 units @ $46 \[ \text{Ending Inventory} = 7 \text{ units} \times \$46 = \$322 \] **Answer:** **b. $322** --- ### c. Weighted Average Cost **Step 1: Find total cost and total units.** \[ \text{Total Cost} = (7 \times 46) + (8 \times 47) + (15 \times 48) + (9 \times 50) \] \[ = 322 + 376 + 720 + 450 = \$1,868 \] \[ \text{Total Units} = 7 + 8 + 15 + 9 = 39 \] \[ \text{Weighted Average Cost per Unit} = \frac{1,868}{39} \approx \$47.90 \] **Step 2: Calculate ending inventory (7 units):** \[ 7 \times 47.90 = \$335.30 \] **Round to the nearest dollar:** \[ \$335.30 \approx \$335 \] **Answer:** **c. $335** --- ## **Final Summary Table** | Method | Ending Inventory Cost | |----------|----------------------| | FIFO | $350 | | LIFO | $322 | | Weighted Average | $335 | **Summary:** - FIFO gives the highest ending inventory ($350). - LIFO gives the lowest ($322). - Weighted average falls in between ($335).

# Periodic Inventory by Three Methods ## Inventory Data | Date | Description | Units | Unit Cost | |-----------|-------------|-------|-----------| | Jan. 1 | Inventory | 7 | $46 | | Feb. 17 | Purchase | 8 | $47 | | Jul. 21 | Purchase | 15 | $48 | | Nov. 23 | Purchase | 9 | $50 | **Total units available:** 7 + 8 + 15 + 9 = **39 units** **Physical inventory at year-end:** **7 units** --- ## a. First-In, First-Out (FIFO) FIFO assumes the oldest inventory items are sold first, meaning the ending inventory consists of the newest purchases. ### Ending Inventory Calculation: - Use the most recent purchase(s) first. 1. Nov. 23: 9 units @ $50 → Use 7 units @ $50 \[ \text{Ending Inventory} = 7 \text{ units} \times \$50 = \$350 \] **Answer:** **a. $350** --- ## b. Last-In, First-Out (LIFO) LIFO assumes the newest inventory items are sold first, meaning the ending inventory consists of the oldest items. ### Ending Inventory Calculation: - Use the oldest inventory first. 1. Jan. 1: 7 units @ $46 → Use 7 units @ $46 \[ \text{Ending Inventory} = 7 \text{ units} \times \$46 = \$322 \] **Answer:** **b. $322** --- ## c. Weighted Average Cost ### Step 1: Calculate Total Cost and Total Units \[ \text{Total Cost} = (7 \times 46) + (8 \times 47) + (15 \times 48) + (9 \times 50) \] \[ = 322 + 376 + 720 + 450 = \$1,868 \] \[ \text{Total Units} = 7 + 8 + 15 + 9 = 39 \] \[ \text{Weighted Average Cost per Unit} = \frac{1,868}{39} \approx \$47.90 \] ### Step 2: Calculate Ending Inventory (7 units) \[ 7 \times 47.90 = \$335.30 \] **Round to the nearest dollar:** \[ \$335.30 \approx \$335 \] **Answer:** **c. $335** --- ## Final Summary Table | Method | Ending Inventory Cost | |---------------------|----------------------| | FIFO | $350 | | LIFO | $322 | | Weighted Average | $335 | --- ## Summary - **FIFO** results in the highest ending inventory cost of **$350**. - **LIFO** results in the lowest ending inventory cost of **$322**. - **Weighted Average Cost** results in an ending inventory cost of **$335**.

# Periodic Inventory Summary by Method ## Inventory Data Overview The inventory contains four transactions with a total of 39 units available, and a physical count of 7 units at year-end. The data is essential for calculating the ending inventory costs using different methods. --- ## a. First-In, First-Out (FIFO) Under FIFO, the oldest inventory is sold first, leaving the most recent purchases in ending inventory. For 7 units, the calculation results in an ending inventory value of **$350**. --- ## b. Last-In, First-Out (LIFO) In LIFO, the newest inventory items are sold first, which means the ending inventory consists of the oldest units. The calculation for 7 units yields an ending inventory value of **$322**. --- ## c. Weighted Average Cost This method averages the cost of all units available for sale, resulting in a cost per unit of approximately **$47.90**. Consequently, the ending inventory for 7 units amounts to **$335** after rounding. --- ## Final Summary The three inventory methods yield different ending inventory costs: FIFO at **$350**, LIFO at **$322**, and Weighted Average at **$335**. These variations highlight the impact of inventory valuation methods on financial reporting.