Question

1. Botter Company had a beginning inventory of 200 units at a cost of $13 per unit on August 1. During the month, the following purchases and sales were made. Purchases 250 units at S14 350 units at S15 200 units at S16 Sales August August August 4 15 28 August August August August 7 150 units 11 100 units 17 300 units 24 200 units Botter uses a periodic inventory system Instructions Determine ending inventory and cost of goods sold under (a) FIFO, and (b) LIFO. (a FIFO: Ending inventory S cost of goods sold b) LIFO Ending inventory S cost of goods sold

Answer 1

	Qty	Rate	Amount
	200	13	$2,600.00
	250	14	$3,500.00
	350	15	$5,250.00
	200	16	$3,200.00
Total	1000		14550

Units in ending inventory =1000 units -750 units sold =250 units

a FIFO Ending Inventory in $

250*$16=$3200

50*$15=$750

FIFO Ending Inventory in $3200+750=$3950

FIFO Cost of Goods sold =$14550-$3950=$10600

b

LIFO Ending Inventory in $

200*$13=$2600

50*$14=$700

FIFO Ending Inventory in $2600+$700=$3300

FIFO Cost of Goods sold =$14550-$3300=$11250