Question

Data regarding Tyler corporations’ inventory are given in the following table.

Date                            Units Purchased                      Units Sold                    Units on Hand

January1                                                                                                         2000 @ $1.20

            5                      1,000 @ $1.30                                                                                   

            9                                                                      1,100

            22                                                                    500                             

            29                    300 @ $1.40

Required:

1. Compute Tyler Corporation’s ending inventory under the following independent assumptions:

1. LIFO method, periodic records are kept.

2. Average cost method, periodic records are kept.

3. FIFO method, perpetual records are kept.

4. LIFO method, perpetual records are kept.

2. Compute cost of goods sold assuming that inventory is completed as in (a1) above.

Answer 1

LIFO METHOD - PERIODIC RECORD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning inventory	2000	1.2	2400
Add:	Purchases
Jan, 05	Purchases	1000	$                       1.30	$1,300
Jan, 29	Purchases	300	$                       1.40	$420
	Goods Available for Sold	3300		$4,120
	Sales - from Jan, 29 Purhcases				300	$               1.40	$420
	Sales - from Jan, 05 Purhcases				1000	$               1.30	$1,300
	Sales - from Beginning inventory				300	$               1.20	$360	1700	$           1.20	$2,040
	Total				1600		$2,080	1700		$2,040
AVERAGE COST METHOD- PERIODICAL METHOD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning inventory	2000	1.2	2400
Add:	Purchases
Jan, 05	Purchases	1000	$                       1.30	$1,300
Jan, 29	Purchases	300	$                       1.40	$420
	Goods Available for Sold	3300	$                       1.25	$4,120
	Sales of 1600 Units under avg. Cost				1600	$               1.25	$1,998	1700	$           1.25	$2,122
	Total				1600		$1,998	1700		$2,122
FIFO METHOF - PERPETUAL RECORD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning inventory							2000	$           1.20	2400
Jan, 05	Purchases	1000	$                       1.30	$1,300				2000	$           1.20	2400
								1000	$           1.30	$1,300
Jan, 09	Sales				1100	$               1.20	1320	900	$           1.20	1080
								1000	$           1.30	$1,300
Jan, 22	Sales				500	$               1.20	600	400	$           1.20	480
								1000	$           1.30	$1,300
Jan, 29	Purchases	300	$1.40	$420				400	$           1.20	480
								1000	$           1.30	$1,300
								300	$1.40	$420
								1700		$2,200
LIFO METHOF - PERPETUAL RECORD
		PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
Jan, 01	Begnning inventory							2000	$           1.20	2400
Jan, 05	Purchases	1000	$                       1.30	$1,300				2000	$           1.20	2400
								1000	$           1.30	$1,300
Jan, 09	Sales				1000	$               1.30	$1,300
					100	$               1.20	120	1900	$           1.20	2280
Jan, 22	Sales				500	$               1.20	600	1400	$           1.20	1680
Jan, 29	Purchases	300	$1.40	$420				1400	$           1.20	1680
								300	$1.40	$420
								1700		$2,100