Question

Darboard Combined Effects. Google Dich Kieso Chapter 2 in.. Inventory information for Part 311 of Coronado Corp. discloses the following information for the month of June. June 1 Balance 300 units @ $14 June 10 11 Purchased 804 units @ $16 Sold Sold Sold 203 units @ $32 496 units @ $34 298 units e $36 20 Purchased 502 units @ $18 27 Your answer is correct. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. LIFO FIFO Cost of Goods Sold Ending Inventory $ $ 15352 10748 e Textbook and Media X Your answer is incorrect. 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?

Please help me on part b and c??

Answer 1

Answer b : $9,958

Explanation:

Ending inventory under LIFO (perpetual) =

[(300 units - 203 units) * $14] + [(804 units - 496 units ) * $16] + [(502 units - 298 units ) * $18]

= $1,358 + $4,928 + $3,672

= $9,958

Answer c : $26,080

Explanation:

Total sales value = ( 203 units * $32) + ( 496 units * $34) + ( 502 units * $36)

= $6,496 + $16,864 + $18,072

= $41,432

COGS under FIFO (perpetual) = ( 300 units * $14) + ( 697 units * $16)

= $4,200 + $11,152

= $15,352

Gross Profit (FIFO) = Total sales value - COGS under FIFO (perpetual)

= $41,432 - $15,352

= $26,080.