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Problem - The units of an item available for sale during the year were as follows:
January 10 Inventory 27 units @ $90
February 27 Purchase 54 units @ $98
July 11 Purchase 63 units @ $106
November 13 Purchase 36 units @ $115
There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used.
a. Determine the ending inventory cost by the first-in, first-out method.
b. Determine the ending inventory cost by the last-in, first-out method.
c. Determine the ending inventory cost by the average cost method.
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