Question

i need a detail explanation of how to solve this problem because i dont understand it. thank you

Current Attempt in Progress Inventory information for Part 311 of Vaughn Corp. discloses the following information for the month of June. June 1 11 Balance Purchased 297 units @ $14 803 units @ $17 505 units @ $19 June 10 15 27 Sold Sold Sold 204 units @ $35 497 units @ $36 296 units @ $39 20 Purchased Assuming that the periodic inventory method is used, compute the cost of goods sold and ending Inventory under (1) UFO and (2) FIFO. (1) LIFO FIFO Cost of Goods Sold Ending Inventory e Textbook and Media

Answer 1

Answer (1)

(1) (2) LIFO FIFO Cost of Goods sold $$17,959.00 $16,058.00 Ending Inventory $9,445.00 $11,346.00

Working:

Total units available foe sale = 297 + 803 + 505 = 1605

Total units sold =204 + 497 + 296 = 997

Ending inventory units = 1605 - 997 = 608

Ending inventory Cost per Cost of goods available for sale Cost of 1) Periodic LIFO Cost of Goods sold Cost of Goods Cost per Cost of Goods sold# of units unit #of units #of units unit Ending Inv per unit available for sale $14.00 June 1: Beg Inventory $4,158.00 $14.00 $4,158.00 297 297 Purchases $17.00 $13,651.00 $9,595.00 $17.00 $8,364.00 $17.00 $5,287.00 492 June. 11 803 311 $19.00 $19.00 $9,595.00 June.20 505 505 $27,404.00 $17,959.00 $9,445.00 Total 1605 997 608 Ending inventory Cost per 2) Periodic FIFO Cost of goods available for sale Cost of Goods sold Cost of Goods Cost per #of units unit Cost of #of units Cost of Goods sold#of units unit Ending Inv available for sale per unit 297 297 $14.00 $4,158.00 $14.00 $4,158.00 June 1: Beg Inventory 0 Purchases 700 $17.00 $13,651.00 $17.00 $11,900.00 $17.00 $1,751.00 803 103 June. 11 $19.00 $9,595.00 $19.00 $9,595.00 June 20 505 505 $11,346.00 $27,404.00 $16,058.00 608 Total 997 1605

Answer 2:

The ending inventory at LIFO $ 10,475

Working:

LIFO - Perpetual Beginning Inventory/Purchase Ending Inventory balance Unit Cost per unit Value Cost of goods sold Cost per unit Value Unit Cost per unit Value Unit June, 1 $14.00 $4,158 297 $14.00 $4,158 297 $14.00 $2,856.00 $1,302 $1,302 $17.00 $13,651 $14.00 June. 10 204 93 $17.00 $13,651 $14.00 June. 11 803 93 803 $17.00 $8,449.00 $14.00 $1,302 June. 15 497 93 $17.00 $5,202 306 $19.00 $9,595 93 $14.00 $1,302 June, 20 505 $17.00 $5,202 306 $19.00 $9,595 505 $19.00 $5,624.00 $14.00 $1,302 $5,202 $3,971 June. 27 296 93 $17.00 306 $19.00 209 1,605 $17.07 $27,404 $16,929.00 $10,475 Total 997 608

Answer 3:

Gross Prifit (LIFO) $ 20,518

Working:

Ending inventory based on FIFO perpetual will be same as FIFO Periodic. As such cost of goods sold will be same.

Cost of goods sold = $16058

Sales = 204 * 35 + 497 * 36 + 296 * 39 = $36576

Gross profit = Sales - Cost of goods sold = 36576 - 16058 = $20,518