Question

Question 2 In its first month of operations, Oriole Company made three purchases of merchandise in the following sequence: (1) 200 units at $7, (2) 300 units at $9, and (3) 400 units at $10. Assuming there are 100 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Oriole Company uses a periodic inventory system. The Ending Inventory FIFO LIFO Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Periodic : FIFO # of Units Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Available for # of Units Cost Per Cost of # of Cost Per Ending Cost Per Unit sales sold Unit Goods Sold Units Unit Inventory 200 14001 2001 1400 2700 300 2700 0 400 10 4000 300 10 3000 100 101 1000 900 8100 800 7100 100 1000 0 9 First Second Third Totals 1 Periodic: LIFO # of Units First Second Third Totals Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Available for # of Units Cost Per Cost of # of Cost Per Ending Cost Per Unit sales sold Unit Goods Sold Units Unit Inventory 200 7 1400 100 7 700 100 700 300 9 2700 300 9 2700 270010 910 400 1014000 400 10 4000 0 900 8100 800 7400 100 700 Answers Ending inventory FIFO 1000 LIFO 700 101