Question

Exercise 8-10 (Part Level Submission) Inventory information for Part 311 of Nash Corp. discloses the following information for the month of June. June 1 Balance 301 units @ $16 June 10 Sold 198 units @ $39 11 Purchased 797 units @ $19 15 Sold 497 units @ $41 20 Purchased 498 units @ $21 Sold 301 units @ $44 (a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory ur (1) LIFO FIFO Cost of Goods Sold Ending Inventory

Answer 1

Answer-

	LIFO	FIFO
Cost of Goods Sold	$23486	$22575
Ending Inventory	$11485	$12396

Explanation-

LIFO Method
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jun-01						301	16	4816
Jun-10			198	39	7722	103	16	1648
Jun-11	797	19				103	16	1648
						797	19	15143
Jun-15			497	19	9443	103	16	1648
						300	19	5700
Jun-20	498	21				103	16	1648
						300	19	5700
						498	21	10458
Jun-27			301	21	6321	103	16	1648
						300	19	5700
						197	21	4137
Totals			996		23486	600		11485
FIFO Method
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jun-01						301	16	4816
Jun-10			198	39	7722	103	16	1648
Jun-11	797	19				103	16	1648
						797	19	15143
Jun-15			103	16	1648	403	19	7657
			394	19	7486
Jun-20	498	21				403	19	7657
						498	21	10458
Jun-27			301	19	5719	102	19	1938
						498	21	10458
Totals			996		22575	600		12396