Question

Question 19 Inventory information for Part 311 of Concord Corp. discloses the following information for the month of June. June 1 11 20 Balance Purchased Purchased 299 units @ $11 798 units @ $14 502 units @ $15 June 10 15 27 Sold Sold Sold 197 units @ $27 503 units @ $29 305 units @ $31 Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) ITEO (2) FIFO Cost of Goods Soldal Ending Inventory 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 $ Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) & Click if you would like to Show Work for this question: Open Show Work

Answer 1

Sol. Ending Inventory Unit = opening Unit & Unit Purchased - Unit sold. = {299 +(798 + S02) (197 +503 + 305 ) Junits = {299 + 13.00 - 1005 ] units | 1599 uwita – joos out 594 units of Goods Available = 299 x $11 + 698 x $14 + 502x$15. = $ 3,289 + $ 11,172 + $7530 z $ 21,991,

(a) Assuming that the periodic Inventory Method is used Cost of Ending Inventory - Lifo Method. = 299 wwt x $11. + 295 x $14 = $ 3289 + $4,130 = $7419 fifo Method 2 502 Guit x $15 + 92 Uul x $14_ $7,530 + $1,288 = $8,818

Cost of Goods Sold > = Cost of Goods Available - Cost of Ending Inventory Lifo Method - Cost of Gooels Available - Cose of Cueling Inventory = $21991 - $ 7,419 = $ 14,572 fifo Method Cost of goods Available - Cost of ending Inventory = $21,991 - $8.818 = $ 13,173 LIFO FIFO 123 Cost of Goods Sold | Ending Inventory_ $14,572 $7,419 $13,173 $8818 nvento u 19

(6) Assuming that the perpetual Inventory method is used and cost are Computed at the time of each withdrawal the value of ending Inventory at Lifo : - The ending Inventory at Lifo = E 594 ww't x $ 14 = $ 8316 - (C) Assuming that the per love twaul luventory method is used and Custare Comoured at the time of each withdrawwoul, the gross profit if the Inventory is valued at fifo 8 - Gross profit (fifo) => Unit's sold - Cost of Good Sold Units Sold. => 197 Uu't x $27 +50 3wuil.X $29+ 305 uu't X $31 z $ 5,319 + $ 14,587 +$ 9,455 a $ 29,361_ Gross Profil (fifo) - $29.36! – $ 13173 a $16,188 36 143