Periodic Inventory Example

Product X

Beginning Inventory Feb. 15 Purchase June 15 Purchase Nov. 15 Purchase Tot. M'dse. Available for sale

Units 10 15 12 8 45

Unit Cost Total Cost $8.00 $80.00 10.00 150.00 12.00 144.00 14.00 112.00 $486.00

Units 8 12

Unit Cost Total Cost $14.00 $112.00 12.00 144.00

Ending Inventory = 20 units

FIFO Nov. 15 Purchase June 15 Purchase

20 newest items would be in inventory Inventory Cost

20

$256.00

Tot. M'dse. Available for sale - Ending Inventory Cost = Cost of M'dse. Sold

LIFO Beginning Inventory Feb. 15 Purchase

$486.00 256.00 oldest units were sold $230.00

Units 10 10

Unit Cost Total Cost $8.00 $80.00 10.00 100.00 20 oldest items would be in inventory

Inventory Cost

20

$180.00

Tot. M'dse. Available for sale - Ending Inventory Cost = Cost of M'dse. Sold

$486.00 180.00 newest units were sold $306.00

Average Cost Tot. M'dse. Available for sale = Tot. # of Units Available for sale

Inventory Cost

Tot. M'dse. Available for sale

$486.00 = 45

20

X

$10.80

$486.00

=

$10.80 Avg. Cost per unit

$216.00

- Ending Inventory Cost = Cost of M'dse. Sold

Comparison of results FIFO LIFO AVG. Cost

216.00 $270.00 Ending Inventory Cost $256.00 180.00 216.00

Cost of M'dse. Sold $230.00 306.00 270.00

Profit Highest Lowest Middle