e To illustrate, the data for uem 127B is used as The cost of the per unit Rounded January 31 invensery as folsows Deducting s172os 800 units 121st) puted the of the 31 ory of $17.2xon from ave cosa of ever- as for sale anuary yields the cost of merchandise sold of sz7972. of follows: $20000 Cost of merchandise available for sale in January $45,180 Cost of 17208 merchandise sold $27,972 Example Exercise 6-5 Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item avadable for sale during the year were as follows 6 units at$50 Mar. 20 Purchase 14 units at $55 Oct. 30 20 units at $62 1,240 Available for sale $2.310 There are 16 units of the item in the physical inventory at December 31.The periodic inventory system used.Determine the inventory cost using (a) the first-in, first-out (FIFo) method: b)the last-in, first-out (LIFO) method, and average cost method. Follow My Example 6-5 in, first-out (FIFo) method: s992 (16 units x s62) (o unitsx s55) +40 units Last-n, first-out (LIFo) method: s850 (6 units x sso) -s57as-s2,310 Weighted average cost method: s924 (16 units x s57.75), where average cost Practice Exercises: PE6-5A PE Inventory Costing Methods three different cost flow is assumed for the LIFo, and weighted average inventory use of the flow methods. As a result, the three methods normally yield different amounts for following: Cost of merchandise sold Gross profit Net income merchandise inventory