Question

Ivanhoe Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2020. Quantities Unit Price of Purchase $4.60 $4.8 Date January 11 January 24 February 8 March 16 June 11 Purchased Sold Balance 480 1,310 - 1,790 - 380 1,410 - 570 840 670 - 1,510 $5.2 Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method. Ending inventory $ Compute the cost of goods sold for the first six months under the periodic FIFO inventory pricing method. Cost of goods sold $

Answer 1

Closing ioveotony = 1510 Cost of Goods available for sale - (480x4.6]+[1310 X 4.8] + [670 X5.2) = $ 11980 Perpetual Lifo inventory Method Ending Inventory = [670x5.2] + [480x4.6) +[ 360 x 4.8] 1 Ending Inventory = $7420 Periodic fIFO Method Ending Toventozy - [670 X5.2]+[840x468) $ 7516 Cost of Goods sold = $11980 - $7516 COGS = $ 4464