Question

Inventory information for Part 311 of Nash Corp. discloses the following information for the month of June. 198 units@$39 Sold 301 units @ $16 June 10 June 1 Balance Purchased 797 units @$19 15 Sold 497 units@ $41 11 27 Sold 301 units @$44 498 units @$21 Purchased 20 (a) Your answer is partially correct. Try again. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LD (2) FIFO (1) LIFO 22575 23486 Cost of Goods Sold 12396 11485 Ending Inventory

Answer 1

Total cost of goods available for sale = 301*16+797*19+498*21 = $30,417

(1) LIFO

Cost of goods sold = 198*16+497*19+301*21 = $18,932

Ending inventory = $30,417 - $18,932= $11,485

(2) FIFO

Cost of goods sold = 301*16+695*19 = $18,021

Ending inventory = $30,417 - $18,021 = $12,396