Question

Exercise 8-10 a-c Inventory information for Part 311 of Kingbird Corp. discloses the following information for the month of June. June 1 Balance 301 units @ $16 June 10 Sold 198 units @ $39 11 Purchased 797 units @ $19 15 Sold 497 units $41 20 Purchased 498 units @ $21 27 Sold 301 units $44 Your answer is partially correct. Try again. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) (2) LIFO FIFO Cost of Goods Sold 19920 Ending Inventory LINK TO TEXT x your answer is incorrect. Try again 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 L The ending inventory at UFO

Answer 1

	(1) LIFO	(2) FIFO
Cost of Goods Sold	19920	18021
Ending Inventory	10497	12396

Working:

Periodic-LIFO
	Beginning Inventory + Purchases			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Jun. 1	301	16	4816				301	16	4816
11	797	19	15143	498	19	9462	299	19	5681
20	498	21	10458	498	21	10458
30	Total			996		19920	600		10497
Periodic-FIFO
	Beginning Inventory + Purchases			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Jun. 1	301	16	4816	301	16	4816
11	797	19	15143	695	19	13205	102	19	1938
20	498	21	10458				498	21	10458
30	Total			996		18021	600		12396

The ending inventory at LIFO: $11485

Working:

Perpetual-LIFO
	Purchases			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Jun. 1							301	16	4816
10				198	16	3168	103	16	1648
11	797	19	15143				103	16	1648
							797	19	15143
15				497	19	9443	103	16	1648
							300	19	5700
20	498	21	10458				103	16	1648
							300	19	5700
							498	21	10458
27				301	21	6321	103	16	1648
							300	19	5700
							197	21	4137
30	Total			996		18932	600		11485

Gross profit (FIFO): $23322

Working:

Sales revenue		41343
198 x $39	7722
497 x $41	20377
301 x $44	13244
Less: Cost of goods sold		18021
Gross profit $		23322

Note: The cost of goods sold and ending inventory under FIFO is the same under both the periodic and perpetual inventory systems.