Question

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

June   1	Balance	299 units @ $11		10-Jun	Sold	197 units @ $27
11	Purchased	798 units @ $14		15-Jun	Sold	503 units @ $29
20	Purchased	502 units @ $15		27-Jun	Sold	305 units @ $31
LIFO
	PURCHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Units	Cost Per Unit	Total Cost	Units	Cost Per Unit	Total Cost	Units	Cost Per Unit	Total Cost
1-Jun	299	$                 11.00	$           3,289.00			$                        -	299	$            11.00	$ 3,289.00
11-Jun	798	$                 14.00	$         11,172.00		$            14.00	$                        -		$            14.00	$               -
20-Jun	502	$                 15.00	$           7,530.00	502	$            15.00	$           7,530.00			$               -
Total	1599		$         21,991.00	502		$           7,530.00	299		$ 3,289.00

Answer 1

Correct Answer:

FIFO
FIFO	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jun	299	$ 11	$              3,289	299	$ 11	$        3,289	0	$ 11	$                         -
Purchase
11-Jun	798	$ 14	$           11,172	706	$ 14	$        9,884	92	$ 14	$                  1,288
20-Jun	502	$ 15	$              7,530		$ 15	$               -	502	$ 15	$                  7,530
Total	1599		$           21,991	1005		$      13,173	594		$                  8,818

LIFO
	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jun	299.00	11.00	$        3,289.00		$ 11	$               -	299	$                                   11	$                  3,289
Purchase		0.00
11-Jun	798.00	14.00	$     11,172.00	503	$ 14	$        7,042	295	$                                   14	$                  4,130
20-Jun	502.00	15.00	$        7,530.00	502	$ 15	$        7,530	0	$                                   15	$                         -
Total	1599		$     21,991.00	1005		$      14,572	594		$                  7,419

End of Answer.

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