Question

Inventory information for Part 311 of Waterway Corp.discloses the following information for the month of June. June 1 Balance 301 units @ $16 June 10 Sold 197 units @ $37 11 Purchased 797 units @ $19 15 Sold 498 units @ $39 20 Purchased 503 units @ $20 27 Sold 297 units @ $42 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 $ Ending Inventory $ eTextbook and Media 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 LIFO $

Answer 1

	Unit	Unit Cost	Total Cost
Beginning inventory	301	16	4816
Purchase 1	797	19	15143
Purchase 2	503	20	10060
Total	1601		30019

Sale unit = 197+297+498 = 992 Units

Ending inventory Units = 1601-992 = 609 Units

	LIFO	FIFO
Ending inventory	(4816+308*19) = 10668	(10060+106*19) = 12074
Cost of goods sold	30019-10668 = 19351	30019-12074 = 17945

b) Ending inventory under LIFO perpetual = (104*16+299*19+206*20) = 11465