Inventory Costing Methods (Periodic Inventory System)
This problem-based learning activity helps students apply inventory cost flow methods under a periodic inventory system. Students determine the value of the ending inventory and cost of goods for biology lab microscopes sold by a fictitious entity, Science Education Supplies, Inc. The four methods included are: specific identification, weighted average cost, first-in first-out (FIFO), and last-in first-out (LIFO). In addition, they compare and contrast how applying the different costing methods affects the balance sheet and income statement.