Question

Use the data provided in P2 but assume that the company uses the periodic inventory system. P2 the inventory of Wood4Fun and data on purchases and sales for a two-month period follow.The company does its books at the end of each month It uses the periodic inventory system.Data is as follows, The proble is for P3. page 294. Needles & Powers ( Perpetual Inventory system and Inventory costing Methods. )Use the data as follows but assume that the company uses the perpetual inventory system. I think this is what is messing me up? Do we run a balance of enventory after each transaction? Apr 1 Beginning inventory 50 units @ $204 Apri 10 Purchase 100 units @ $220 April 17 sale 90 units April 30 Ending inventory 60 units May 2 Purchase 100 units @ 216 May 14 Purchase 50 units @ $224 May 22 Purchase 60 units @ $ 234 May 30 sale 200 units May 31 Ending inventory 70 units I need to check my answers for the LIFO and FIFO (perpetual inventory)

Answer 1

LIFO:

	Goods Purchase		Cost of Goods Sold			Inventory Bal.
Date	# 0f Units	Cost per unit	# of units sold	Cost per unit	Amt.	# 0f Units	Cost per unit	Inventory Bal.
April 01						50	$204	$10200
April 10	100	$220				50	$204	$10200
						100	$220	$22000
April 17			90	$220	$19800	50	$204	$10200
						10	$220	$2200
April 30						50	$204	$10200
						10	$220	$2200
May 02	100	$216				50	$204	$10200
						10	$220	$2200
						100	$216	$21600
May 14	50	$224				50	$204	$10200
						10	$220	$2200
						100	$216	$21600
						50	$224	$11200
May 22	60	$234				50	$204	$10200
						10	$220	$2200
						100	$216	$21600
						50	$224	$11200
						60	$234	$14040
May 30			60	$234	$14040	50	$204	$10200
			50	$224	$11200	10	$220	$2200
			90	$216	$19440	10	$216	$2160
May 31						50	$204	$10200
						10	$220	$2200
						10	$216	$2160
Total						70		$14560

FIFO:

	Goods Purchase		Cost of Goods Sold			Inventory Bal.
Date	# 0f Units	Cost per unit	# of units sold	Cost per unit	Amt.	# 0f Units	Cost per unit	Inventory Bal.
April 01						50	$204	$10200
April 10	100	$220				50	$204	$10200
						100	$220	$22000
April 17			50	$204	$10200	60	$220	$13200
			40	$220	$8800
April 30						60	$220	$13200
May 02	100	$216				60	$220	$13200
						100	$216	$21600
May 14	50	$224				60	$220	$13200
						100	$216	$21600
						50	$224	$11200
May 22	60	$234				60	$220	$13200
						100	$216	$21600
						50	$224	$11200
						60	$234	$14040
May 30			60	$220	$13200	10	$224	$2240
			100	$216	$21600	60	$234	$14040
			40	$224	$8960
May 31						10	$224	$2240
						60	$234	$14040
Total						70		$16280