Question

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases listed in chronological order of acquisition): • 52 units at $136 per unit • 130 units at $137 per unit • 182 units at $117 per unit Sales for the year totaled 330 units, leaving 34 units on hand at the end of the year. In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of: Multiple Choice 0 $646. 0 $(646). 0 $0. 0 $53.

Answer 1

Correct answer----------$ (646)

Working

	Cost of Ending inventory
FIFO	$                 3,978
LIFO	$                 4,624
Difference	$                   (646)

.

	Units	Cost per unit	value
Beginning Balance			$ 0
Purchases
	52	$                 136.00	$ 7,072
	130	$                 137.00	$ 17,810
	182	$                 117.00	$ 21,294
Total	364		$ 46,176

.

FIFO
Total Units Available for sale		364
Units Sold		330
Closing Stock in Units		34
Valuation
Ending Inventory	34	@	$           117.00	$ 3,978
Value Of Ending Inventory				$              3,978
Cost of Goods sold				$            42,198
LIFO
Total Units Available for sale		364
Units Sold		330
Closing Stock in Units		34
Valuation
Ending Inventory	34	@	$           136.00	$ 4,624
Value Of Ending Inventory				$              4,624
Cost of Goods sold				$            41,552