Inventory costing methods of specific identification

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Apply the inventory costing methods of specific identification, weighted average, FIFO, and LIFO by using a periodic system.

The purchase price of inventory items may change frequently, and several alternatives are available to assign costs to the goods sold and those that remain in ending inventory.
Specific identification assigns the actual costs of acquisition to items of inventory. In some circumstances, it is not practical to do this.
Three other methods involve making assumptions about the cost of inventory.
Weighted average assigns the same unit cost to all units available for sale during the period.
The FIFO method assumes that the first units purchased are the first units sold.
The LIFO method assumes that the last units purchased are the first units sold.

Reference no: EM13953421

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