Question

Exercise 8-10 Inventory information for Part 311 of Sandhill Corp, discloses the following information for the month of June. June 1 Balance 304 units $13 June 10 Sold 205 units $30 11 Purchased 804 units $15 15 Sold 504 units @ $32 20 Purchased 498 units @ $16 27 Sold 295 units $34 Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (2) (1) LIFO FIFO Cost of Goods Sold Ending Inventory LINK TO TEXT 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

Answer 1

Sandhill Corp. FIFO Periodic LIFO Periodic Date Jun-01 Jun-11 Jun-20 Units 304 804 498 1606 -602 1004 Unit Cost 13 15 16 Goods Available for sale Closing Stock Cost of goods sold Total Cost 3952 12060 7968 23980 -9528 14452 Date Jun-01 Jun-11 Jun-20 Units 304 804 498 1606 -602 1004 Unit Cost 13 15 16 Goods Available for sale Closing Stock Cost of goods sold Total Cost 3952 12060 7968 23980 -8422 15558 Closing Stock = 1606 - 1004 = 602 Closing Stock = 1606 - 1004 = 602 Unit Cost Closing Stock Date Units Jun-20 498 Jun-11 104 602 Closing Stock Date Units Jun-01 304 Jun-11 298 602 Total Cost 7968 1560 9528 Unit Cost 13 Total Cost 3952 4470 8422 15 15 Selling Price Sales Date Jun-10 Jun-15 Jun-27 Selling Price 30 Units 205 504 295 1004 Sales Date Jun-10 Jun-15 Jun-27 32 Total Sales 6150 16128 10030 32308 -14452 17856 Units 205 504 295 1004 34 Sales Cost of goods sold Gross Profit 32 34 Sales Cost of goods sold Gross Profit Total Sale: 6150 16128 10030 32308 - 15558 16750

FIFO Perpetual Purchases Unit Cost Total Cost Cost of goods sold Units Unit Cost Total Cost Units Units 304 Date Jun-01 Jun-10 Jun-11 205 13 2665 99 Balance Unit Cost Total Cost 13 3952 13 1287 13 1287 12060 5985 804 15 12060 99 804 399 Jun-15 99 405 13 15 1287 6075 Jun-20 498 16 7 968 15 Jun-27 295 15 4425 15 399 498 1 04 498 104 498 5985 7968 1560 7968 1560 7968 Jun-30 16 Purchases 20028 COGS 14452 Ending 9528 LIFO Perpetual Purchases Unit Cost Total Cost Cost of goods sold Units Unit Cost Total Cost Units Units 304 Date Jun-01 Jun-10 Jun-11 205 13 2665 Balance Unit Cost Total Cost 13 3952 1287 1287 12060 1287 13 804 15 12060 99 804 Jun-15 504 15 7560 99 300 Jun-20 498 16 7968 99 15 300 498 Jun-27 295 16 4720 99 4500 1287 4500 7968 1287 4500 3248 1287 4500 3248 300 203 16 Jun-30 300 203 15 16 Purchases 20028 COGS 14945 Ending 9035

Selling Price FIFO Sales Date Jun-10 Jun-15 Jun-27 Units 205 504 295 1004 32 34 Sales Cost of goods sold Gross Profit Total Sales 6150 16128 10030 32308 - 14452 17856 Selling Price LIFO Sales Date Jun-10 Jun-15 Jun-27 Units 205 504 295 1004 32 34 Sales Cost of goods sold Gross Profit Total Sales 6150 16128 10030 32308 -14945 17363