Question

and Question 6 View Policies Current Attempt in Progress Con Inventory information for Part 311 of Coronado Corp. discloses the following information for the month of June. June 1 Balance 300 units 514 11 Purchased 804 units 516 June 10 15 27 Sold Sold Sold 203 units 532 496 units 534 298 units @ $36 20 Purchased 502 units @ $18 Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (2) FIFO LIFO Cost of Goods Solds Ending Inventory Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? The ending inventory at LIFOS Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO)

Answer 1

Periodic Method LIFO Method : Units Date 1606 Activity 01-Jun Beginning Inventory 11-Jun Purchase 20-Jun Purchase No of units Unit cost 300 $ 14.00 804 $ 16.00 502 $ 18.00 Total Cost $ 4,200.00 $ 12,864.00 $ 9,036.00 Purchases Less : Sales Ending Inventory -997 609 Cost of goods available for sale $ 26,100.00 Less : Ending Inventory 609 units : 300 units @ $14 309 Units @ $16 $ $ 4,200.00 4,944.00 Ending Inventory $ 9,144.00 Cost of Goods sold : Cost of goods available for sale - Ending Inventory $ 16,956.00 Note : LIFO Method Assumes that Goods which are purchased last will be sold First, so in Ending inventory units will be there which are purchased first.

Periodic Method FIFO Method : Date Activity 01-Jun Beginning Inventory 11-Jun Purchase 20-Jun Purchase No of units Unit cost 300 $ 14.00 804 $ 16.00 502 $ 18.00 Total Cost $ 4,200.00 $ 12,864.00 $ 9,036.00 Purchases Less : Sales Ending Inventory Units 1606 -997 609 Cost of goods available for sale $ 26,100.00 Less : Ending Inventory 609 units : 502 units @ $18 107 units @ $ 16 $ $ 9,036.00 1,712.00 Ending Inventory $ 10,748.00 Cost of Goods sold: Cost of goods available for sale - Ending Inventory $ 15,352.00 Note : FIFO Method Assumes that Goods which are purchased first will be sold First, so in Ending inventory units will be there which are purchased last.

Perpetual Inventory Method Lifo Method Date Purchases unit cost Cost of goods sold unit cost Total cost Quantity Total cost Quantity Inventory Quantity unit cost total cost 300 $ 14.00 $ 4,200.00 01-Jun 10-Jun 203 $ 14.00 $ 2,842.00 97 $ 14.00 $ 1,358.00 11-Jun 804 $ 16.00 $ 12,864.00 97 $ 804 $ 14.00 16.00 $ 1.358.00 $ 12,864.00 15-Jun 496 $ 16.00 $ 7,936.00 97 $ 308 $ 14.00 16.00 $ $ 1,358.00 4,928.00 20-Jun 502 $ 18.00 $ 9,036.00 97 $ 308 $ 502 $ 14.00 16.00 18.00 $ $ $ 1,358.00 4,928.00 9,036.00 27-Jun 298 $ 18.00 $ 5,364.00 97 $ 308 $ 204 $ 14.00 16.00 18.00 $ $ $ 1,358.00 4,928.00 3,672.00 609 $ 9,958.00 Ending Inventory Using Perpetual system $9.958.00

Perpetual Inventory Method FIFO Method Date Purchases unit cost Cost of goods sold unit cost Total cost Quantity Total cost Quantity Inventory Quantity unit cost total cost 300 $ 14.00 $ 4,200.00 01-Jun 10-Jun 203 $ 14.00 $ 2,842.00 97 $ 14.00 $ 1,358.00 11-Jun 804 $ 16.00 $ 12,864.00 97 $ 804 $ 14.00 16.00 $ $ 1,358.00 12,864.00 15-Jun 405 $ 16.00 $ 6,480.00 97 $ 399 $ 14.00 16.00 $ $ 1,358.00 6,384.00 20-Jun 502 $ 18.00 $ 9,036.00 405 $ 502 $ 16.00 18.00 $ $ 6,480.00 9,036.00 27-Jun 298 $ 16.00 $ 4,768.00 107 $ 502 $ 16.00 18.00 $ $ 1,712.00 9,036.00 Cost of goods sold $ 15,352.00 Gross Profit : Sales Less : Cost of goods sold Gross Profit $ 34,088.00 $ (15,352.00) $ 18,736.00