Question

1. The Boxwood Company sells blankets for $34 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date   Blankets   Units   Cost
May 3     Purchase   9  
$16

10     Sale   3  
17     Purchase   16  
$17

20     Sale   5  
23     Sale   2  
30     Purchase   12  
$22

Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.

2. The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date   Blankets   Units   Cost
May 3     Purchase   11  
$16

10     Sale   5  
17     Purchase   11  
$18

20     Sale   8  
23     Sale   2  
30     Purchase   8  
$19

Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.

3. The Boxwood Company sells blankets for $32 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date   Blankets   Units   Cost
May 3     Purchase   10  
$16

10     Sale   5  
17     Purchase   10  
$18

20     Sale   6  
23     Sale   3  
30     Purchase   8  
$20

Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the FIFO inventory cost method.

4. The Boxwood Company sells blankets for $32 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date   Blankets   Units   Cost
May 3     Purchase   10  
$16

10     Sale   5  
17     Purchase   10  
$18

20     Sale   6  
23     Sale   3  
30     Purchase   8  
$20

Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the FIFO inventory cost method.

5. The following lots of Commodity Z were available for sale during the year.

Beginning inventory   10 units at $50
First purchase   18 units at $54
Second purchase   55 units at $59
Third purchase   16 units at $61
The firm uses the periodic system, and there are 26 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?

Answer 1

1) COGS for the sale of May 20: $85

Working:

Date	Blankets	Units	Cost
May-03	Purchase	9	16
May-10	Sale	3
May-17	Purchase	16	17
May-20	Sale	5
May-23	Sale	2
May-30	Purchase	12	22

LIFO-COGS
	Blankets	Units	Cost	Total
May-20	Sale	5	17	85

　

2) COGS for the sale of May 20: $132

Working:

Date	Blankets	Units	Cost
May-03	Purchase	11	16
May-10	Sale	5
May-17	Purchase	11	18
May-20	Sale	8
May-23	Sale	2
May-30	Purchase	8	19

FIFO-COGS
	Blankets	Units	Cost	Total
May-20	Sale	6	16	96
		2	18	36
				132

　

As per policy we have to answer first question, I have answered two