Question

Compute the value of the ending inventory. Costs increase 5% every quarter over the beginning cost. 6000 units are sold during the year. a) (1pt) FIFO Cost Quantity $200,000 1500 units Beginning Inventory $210,000 1500 units 1Q $220,000 20 1500 units 3Q 1500 units $230,000 1500 units 4Q $240,000 7,500 units 7 S1,100,000 2 e Totals Goco Soo COGS Ending Inventory b) (I pt) LIFO Quantity Cost 1500 units Beginning Inventory $200,000 $210,000 1500 units 4T 20 1500 units $220,000 30 1500 units $230,000 4Q 1500 units $240,000 Totals $7.500 units 5 SI,100,000 COGS ১ १০০ Ending Inventory 15 0 7
it is a Management system control question

plz show how to get the answer

Answer 1

	Qty	Cost
B	1500	200000
Q1	1500	210000
Q2	1500	220000
Q3	1500	230000
Q4	1500	240000
TOTAL	7500	1100000

6000 units sold as given in question. So balance ie 7500-6000 = 1500 in stock at end.

a) FIFO: Oldest inventory in hand will be first sold, then the succeeding inventory will be sold

COGS	6000	200000+210000+220000+230000 = 860000
Ending	1500	240000

b) LIFO: Newest inventory in hand will be first sold, then the preceding inventory will follow:

COGS	6000	240000+230000+220000= 900000
Ending	1500	200000

Please comment for any further help on this solution.