Question

On December 1, 2019, Ayayai Company had the account balances shown below.

		Debit				Credit
Cash		$6,800		Accumulated Depreciation—Equipment		$1,500
Accounts Receivable		3,700		Accounts Payable		3,000
Inventory		1,815	*	Common Stock		18,000
Equipment		21,600		Retained Earnings		11,415
		$33,915				$33,915

^*(3,300 x $0.55)

The following transactions occurred during December.

Dec. 3		Purchased 4,600 units of inventory on account at a cost of $0.65 per unit.
5		Sold 4,900 units of inventory on account for $0.84 per unit. (Ayayai sold 3,300 of the $0.55 units and 1,600 of the $0.65.)
7		Granted the December 5 customer $84 credit for 100 units of inventory returned costing $56. These units were returned to inventory.
17		Purchased 2,200 units of inventory for cash at $0.80 each.
22		Sold 2,000 units of inventory on account for $0.96 per unit. (Ayayai sold 2,000 of the $0.65 units.)

Adjustment data:

1.		Accrued salaries payable $300.
2.		Depreciation $200 per month.

Compute ending inventory and cost of goods sold under FIFO, assuming Ayayai Company uses the periodic inventory system.

Ending Inventory		$
Cost of Goods Sold		$

(f)

Compute ending inventory and cost of goods sold under LIFO, assuming Ayayai Company uses the periodic inventory system.

Ending Inventory		$
Cost of Goods Sold		$

Answer 1

Purchase Data						CGS FIFO Calculation								CGS LIFO Calculation
Date	Units	Price/Unit	Total		Date	units sold	CGS		Units left	Ending Inventory Value			Date	units sold	CGS	Units left	Ending Inventory Value
1-Dec	3300	0.55	1815
3-Dec	4600	0.65	2990
					5-Dec	3300	(3300*0.55) =1815		4600				5-Dec	4600	(4600*0.65) = 2990	3300
					5-Dec	1600	(1600*0.65) =1040		3000				5-Dec	300	(300*0.55) = 165	3000
					7-Dec	-100	(-100*0.65) = - 65		3100				7-Dec	-100	(-100*0.55) = - 55	3100
17-Dec	2200	0.80	1760
					22-Dec	3100	(3100*0.65) = 2015		2200				22-Dec	2200	(2200*0.8) = 1760	3100
					22-Dec	200	(200*0.8) = 160		2000	(2000*0.8) = 1600			22-Dec	1100	(1100*0.55) = 605	2000	(2000*0.55) = 1100
							4965			1600					5465		1100