Question

Inventory information for Part 311 of Bonita Corp. discloses the following information for the month of June. June 1 Balance 304 units @ $13 June 10 Sold 205 units @ $30 11 Purchased 804 units @ $15 15 Sold 504 units @ $32 20 Purchased 498 units @ $16 27 Sold 295 units @ $34 (a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) LIFO (2) FIFO Cost of Goods Sold $enter a dollar amount $enter a dollar amount Ending Inventory $enter a dollar amount $enter a dollar amount

Answer 1

	Unit	Unit Cost	Total Cost
June 1	304	13	3952
June 11	804	15	12060
June 20	498	16	7968
Total	1606		23980

Sale unit= 205+504+295 = 1004

Calculate following

	LIFO	FIFO
Cost of goods sold	(506*15+7968) = 15558	(700*15+3952) = 14452
Ending inventory	23980-15558 = 8422	23980-14452 = 9528