Question

INVENTORY ITEM 621AB UNITS DATE COST Beginning Inventory $6 $7 Jan 1 120 Purchase 200 Jan 7 Sale Jan 10 250 Purchase $8 Jan 15 300 Jan 17 Purchase $9 200 Sale 325 Jan 20 Sale Jan 25 100 Jan 28 Purchase $10 175 Smith Corporation uses a perpetual inventory system. Determine the costs assigned to Cost of Goods Sold and Ending Inventory using both FIFO and LIFO methods. DATE ITEM RED16 UNITS COST Beginning Inventory $10 Jan 1 100 Jan 7 Sale 90 Purchase 250 $15 Jan 8 Jan 10 Sale 140 $20 Jan 13 Purchase 400 Jan 20 Sale 300 Jan 31 Purchase $25 600 Ronald Corporation uses a perpetual inventory system. Determine the costs assigned to Cost of Goods Sold and Ending Inventory using both FlFO and LIFO methods LETE ITEM TANGO123 UNITS COST DATE $6 Beginning Inventory Sale 170 Jan 1 75 Jan 10 Purchase $7 Mar 7 150 Sale Mar 15 140 $8 July 28 Purchase 350 Purchase $9 Oct 3 380 Sale Oct 5 475 Purchase $10 Dec 19 80 Northridge Company uses a perpetual inventory system. Determine the costs assigned to Cost of Goods Sold and Ending Inventory using both FIFO and LIFO methods.

Answer 1

Smith Corporation
Date	Item	units	Cost/ unit ($)
Jan-01	Beginning Inventory	120	6
Jan-07	Purchase	+ 200	7
Jan-10	Sale	- 250
Jan-15	Purchase	+ 300	8
Jan-17	Purchase	+ 200	9
Jan-20	Sale	- 325
Jan-25	Sale	- 100
Jan-28	Purchase	+ 175	10
Dec-31	Ending Inventory	320
Ending inventory as per FIFO = 145 units @ 9 + 175 units @ 10
	= 3055
Cost of Goods Sold as per FIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-10	Sale	120	6	720
		130	7	910
Jan-20	Sale	70	7	490
		255	8	2040
Jan-25	Sale	45	8	360
		55	9	495
	Total	675		5015
Ending inventory as per LIFO = 120 units @ 6 + 200 units @ 7
	= 2120
Cost of Goods Sold as per LIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-10	Sale	250	8	2000
Jan-20	Sale	50	8	400
		200	9	1800
		75	10	750
Jan-25	Sale	100	10	1000
	Total	675		5950
Ronald Corporation
Date	Item	units	Cost/ unit ($)
Jan-01	Beginning Inventory	100	10
Jan-07	Sale	-90
Jan-08	Purchase	250	15
Jan-10	Sale	-140
Jan-13	Purchase	400	20
Jan-20	Sale	-300
Jan-31	Purchase	600	25
Dec-31	Ending Inventory	820
Ending inventory as per FIFO = 220 units @ 20 + 600 units @ 25
	= 19400
Cost of Goods Sold as per FIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-07	Sale	90	10	900
Jan-10	Sale	10	10	100
		130	15	1950
Jan-20	Sale	120	15	1800
		180	20	3600
	Total	530		8350
Ending inventory as per LIFO = 70 units @ 25 + 400 units @ 20 + 250 units @ 15 + 100 units @ 10
	= 14500
Cost of Goods Sold as per LIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-07	Sale	90	25	2250
Jan-10	Sale	140	25	3500
Jan-20	Sale	300	25	7500
	Total	530		13250
Northridge Company
Date	Item	units	Cost/ unit ($)
Jan-01	Beginning Inventory	170	6
Jan-10	Sale	-75
Mar-07	Purchase	150	7
Mar-15	Sale	-140
Jul-28	Purchase	350	8
Oct-03	Purchase	380	9
Oct-05	Sale	-475
Dec-19	Purchase	80	10
Dec-31	Ending Inventory	440
Ending inventory as per FIFO = 80 units @ 10 + 360 units @ 9
	= 4040
Cost of Goods Sold as per FIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-10	Sale	75	6	450
Mar-15	Sale	95	6	570
		45	7	315
Oct-05	Sale	105	7	735
		350	8	2800
		20	9	180
	Total	690		5050
Ending inventory as per LIFO = 170 units @ 6 + 150 units @ 7 + 120 units @ 8
	= 3030
Cost of Goods Sold as per LIFO		Units	Cost/ unit ($)	Total cost ($)
Jan-10	Sale	75	10	750
Mar-15	Sale	5	10	50
		135	9	1215
Oct-05	Sale	245	9	2205
		230	8	1840
	Total	690		6060