Question

Waterway Company uses a periodic system reports the following for the month of June. Unit Cost $7 8 June 1 12 23 30 Units 300 300 420 310 110 Inventory Purchase Purchase Inventory Total Cost $ 2,100 3,360 2,790 (a) Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO Cost of the ending inventory Cost of goods sold

Answer 1

Solution

	LIFO	FIFO
The ending Inventory	$                     770	$                       990
Cost of Goods sold	$                 7,480	$                   7,260

Working

FIFO
Total Units Available for sale		1030
Units Sold		920
Closing Stock in Units		110
Valuation
Ending Inventory	110	@	$               9.00	$ 990
Value Of Ending Inventory				$                  990
Cost of Goods sold				$              7,260

.

LIFO
Total Units Available for sale		1030
Units Sold		920
Closing Stock in Units		110
Valuation
Ending Inventory	110	@	$               7.00	$ 770
Value Of Ending Inventory				$                  770
Cost of Goods sold				$              7,480