Question

Determine Monsoon's ending inventory in dollars using Perpetual FIFO. Round to the nearest dollar.

Monsoon Company has a beginning balance in inventory of 400 units at @ $4.20 per unit. A record of transactions for the month of May was as follows: Purchases Sales May Cost May # Price 200 $7.00 1,100 600 $4.10 $4.30 800 $7.00 900 $4.40 800 $7.50 500 $7.50 1,450 550 $4.50 $4.50 1,450 $8.00

Determine Monsoon's ending inventory in dollars using Perpetual LIFO. Round to the nearest dollar.

Answer 1

Ending Inventory in dollars using Perpetual FIFO - $5,625

Ending Inventory in dollars using Perpetual LIFO - $5,485

Monsoon Company Perpetual Inventory System Inventory sheet - FIFO Goods Purchased Date Quantity Cost per unit Total cost 1-May 3-May 4-May 1,100 $ 4.10 4,510.00 Cost of goods sold Cost per unit Total cost Quantity 200 $ 4.20 840.00 Ending Inventory Quantity Cost per unit Total cost 400 $ 4.20 1,680.00 200 $ 4.20 840.00 200 $ 4.20 840.00 1,100 $ 4.10 4,510.00 1,300 5,350.00 6-May 200 600 $ $ 4.20 4.10 840.00 2,460.00 8-May 600 $ 4.30 2,580.00 500 500 600 1,100 $ $ $ 4.10 4.10 4.30 2,050.00 2,050.00 2,580.00 4,630.00 12-May 500 300 $ $ 4.10 4.30 2,050.00 1,290.00 14-May 900 $ 4.40 3,960.00 300 300 900 1,200 $ $ $ 4.30 4.30 4.40 1,290.00 1,290.00 3,960.00 5,250.00 18-May 300 200 $ $ 4.30 4.40 1,290.00 880.00 22-May 1,450 $ 4.50 6,525.00 700 700 1,450 2,150 $ $ $ 4.40 4.40 4.50 3,080.00 3,080.00 6,525.00 9,605.00 25-May 700 750 $ $ 4.40 4.50 3,080.00 3,375.00 29-May 550 $ 4.50 2,475.00 700 700 550 1,250 1,250 $ $ $ 4.50 4.50 4.50 3,150.00 3,150.00 2,475.00 5,625.00 5,625.00 Totals 4,600 20,050.00 3,750 16,105.00

Quantity Cost of goods sold cost per unit Total cost Inventory sheet - LIFO Goods Purchased Date Quantity Cost per unit Total cost 1-May 3-May 4-May 1,100 $ 4.10 4,510.00 200 $ 4.20 840.00 6-May 800 $ 4.10 3,280.00 8-May 600 $ 4.30 2,580.00 12-May 2,580.00 600 $ 200 $ 4.30 4.10 14-May 900 $ 4.40 3,960.00 Ending Inventory Quantity Cost per unit Total cost 400 $ 4.20 1,680.00 2 00 $ 4.20 840.00 200 $ 4.20 840.00 1,100 $ 4.10 4,510.00 1,300 5,350.00 200 $ 4.20 840.00 300 $ 4.10 1,230.00 500 2,070.00 200 $ 4.20 840.00 300 $ 4.10 1,230.00 600 $ 4.30 2,580.00 1,100 4,650.00 200 $ 4.20 840.00 100 $ 4.10 410.00 300 1,250.00 200 $ 4.20 840.00 100 $ 4.10 410.00 900 $ 4.40 3,960.00 1,200 5,210.00 200 $ 4.20 840.00 100 $ 4.10 410.00 400 $ 4.40 1,760.00 700 3,010.00 200 $ 4.20 840.00 100 $ 4.10 410.00 400 $ 4.40 4.40 1,760.00 1,450 $ 4.50 6,525.00 2,150 9,535.00 200 $ 4.20 840.00 100 $ 4.10 410.00 400 $ 4.40 1,760.00 700 3,010.00 200 $ 4.20 840.00 100 $ 4.10 410.00 400 $ 4.40 1,760.00 550 $ 4.50 2,475.00 1,250 5,485.00 1,250 5,485.00 18-May 500 $ 4.40 2,200.00 22-May 1,450 $ 4.50 6,525.00 25-May 1,450 $ 4.50 6,525.00 29-May 550 $ 4.50 2,475.00 Totals 4,600 20,050.00 3,750 16,245.00