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4PSA_3

Expert-verified
Found in: Page 266

### Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

# Refer to the information in Problem 5-3A and assume the periodic inventory system is used. RequiredCompute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

 Method Ending Inventory FIFO $18,400 LIFO$18,000 Weighted Average $17,156 Specific Identification$18,200
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## Definition of Cost Allocation

The process under which the cost incurred by the business entity is allocated to the objects, process, or product is known as cost allocation.

## Determination of Ending Inventory

(a) FIFO

 Particular Units X Per unit cost = Total cost Sep 5 400 X 46 = $18,400 Total$18,400

(b) LIFO

 Particular Units X Per unit cost = Total cost Beginning Inventory 400 X 45 = $18,000 Total$18,000

(c) Weighted Average

(d) Specific Identification

 Particular Units X Per unit cost = Total cost 10 February 100 X 42 = 4,200 21 August 50 X 50 = 2,500 5 September 250 X 46 = 11,500 Total \$18,200