Question

Inventory information for Part 311 of Blue Corp. discloses the following information for the month of June.

June 1 Balance 299 units @ $16
June 10 Sold 196 units @ $38
June 11 Purchased 803 units @ $19
June 15 Sold 502 units @ $40
June 20 Purchased 505 units @ $21
June 27 Sold 297 units @ $43

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

(1)
LIFO
Cost if good sold: $
Ending Inventory: $
(2)
FIFO

Cost of Goods Sold: $
Ending Inventory: $

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

The ending inventory at LIFO: $

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

Gross Profit (FIFO): $

Answer 1

	Units	Unit cost	Total
June 1	299	16	4784
June 11	803	19	15257
June 20	505	21	10605
Total cost	1607		30646
	Units	Unit price	Total
June 10	196	38	7448
June 15	502	40	20080
June 27	297	43	12771
Total sales	995		40299
Ending inventory units	612	=1607-995
(1)
LIFO:
Cost of good sold	19915	=(505*21)+(995-505)*19
Ending Inventory	10731	=(299*16)+(612-299)*19
(2)
FIFO:
Cost of good sold	18008	=(299*16)+(995-299)*19
Ending Inventory	12638	=(505*21)+(612-505)*19
Perpetual inventory method:
The ending inventory at LIFO:	11735	=(299-196)*16+(803-502)*19+(505-297)*21
Sales revenue	40299
Less: Cost of goods sold FIFO	18008
Gross Profit (FIFO)	22291