Question

Coronado Co. uses a periodic inventory system. Its records show the following for the month of May, in which 74 units were sold.

				Units			Unit Cost			Total Cost
May 1		Inventory		34			$10			$340
15		Purchases		29			13			377
24		Purchases		33			14			462
		Totals		96						$1,179

Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

		FIFO		LIFO
Ending inventory at May 31		$		$
Cost of goods sold		$		$

Answer 1

Solution

	FIFO	LIFO
Ending Inventory	$                     308	$                       220
Cost of Goods Sold	$                     871	$                       959

Working

FIFO
Total Units Available for sale		96
Units Sold		74
Closing Stock in Units		22
Valuation
Ending Inventory	22	@	$             14.00	$ 308
Value Of Ending Inventory				$ 308
Cost of Goods sold				$ 871
LIFO
Total Units Available for sale		96
Units Sold		74
Closing Stock in Units		22
Valuation
Ending Inventory	22	@	$             10.00	$ 220
Value Of Ending Inventory				$                  220
Cost of Goods sold	1179 minus 220			$                  959