Question

What are the three methods of periodic inventory?

1) First-in, First-out (FIFO)
2) Last-in, First-out (LIFO)
3) Weighted Average

Answer 1

The three methods of periodic inventory are First-in, First-out (FIFO), Last-in, First-out (LIFO), and Weighted Average.

Step-by-step explanation:

The three methods of periodic inventory are:

1. First-in, First-out (FIFO): This method assumes that the oldest inventory items are sold first. It means that the cost of goods sold is based on the oldest costs, and the ending inventory is based on the most recent costs.
2. Last-in, First-out (LIFO): This method assumes that the newest inventory items are sold first. It means that the cost of goods sold is based on the most recent costs, and the ending inventory is based on the oldest costs.
3. Weighted Average: This method calculates the average cost of all inventory items. It takes into account both the cost and quantity of each item to determine the average cost.