Question

Culver Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Culver Company uses the periodic inventory system. Purchases Sales Units Unit Cost Units Selling Price/Unit 3/1 Beginning inventory 90 $40 $40 3/3 Purchase $50 3/4 Sales 53 $90 3/10 Purchase $55 $55 3/16 Sales $100 3/19 Sales $100 $100 3/25 Sales 3/30 Purchase 37 $60

Answer 1

In the periodic system records inventory purchases at specific time period and doesn’t keep a constant, existent time record of inventory merchandise sell.

As per LIFO method goods sold from the last purchase at the end of month under periodic inventory system.

Ending Inventory as per LIFO method

Ending Inventory

111 units

$ $ 4,650

• Ending Inventory in Units

Total units available ( 90+53+180+37)	360 units
Less : No. of units sold ( 53+61+82+53)	249 units
Ending inventory	111 units

LIFO ( Periodic method )
Transaction	Units	Cost per unit	Total
Beginning Inventory March,1	90	$ 40	$ 3,600
Purchase
March,3	53	$ 50	$ 2,650
March.10	180	$ 55	$ 9,900
March.30	37	$ 60	$ 2,220
Goods available for Sales	360		$ 18,370
Cost of Goods Sold
From Purchase March.30	37	$ 60	$ 2,220
From Purchase March.10	180	$ 55	$ 9,900
From Purchase March.3	32	$ 50	$ 1,600
Total cost of Goods Sold	249		$ 13,720
Ending Inventory
From Purchase March.3 (53-32)	21	$ 50	$ 1,050
Beginning Inventory March,1	90	$ 40	$ 3,600
Total Ending Inventory	111		$ 4,650