Question

3) Inventory (25 Points) During June, the following changes in inventory took place: June 1 10 24 Beginning Balance Purchased Purchased 500 units @ $25 per unit 800 units @ $35 per unit 700 units a $10 per unit 400 units a $50 per unit 800 units a $50 per unit 600 units SS5 per unit Sold Sold 14 Required: Round your final answers to the nearest dollar a) What are the values of the ending inventory and cost of yoods sold on June 30 under the FIFO method with a periodic inventory system? b) What are the values of the ending inventory and cost of goods sold on June 30 under the Average Cost method assuming a periodic inventory system isused! c) What are the values of the ending inventory and cost of goods sold on June 30 under the LIFO method with a perpetual inventory system? booX 50 = 30,000 500X25 = 12,500 600 X 55 = 33,000 (7,000 500x35=175,000 30,000 500125=12800 6ooxgg = 33,000 Yoox 50=20,000 800 x 50 = 40,000 45,500 6oor 55= 33,000 93,000 500x25=12500 Soo X35 = 28,000 700 X30 = 21,000 100x29=2,500 00X30 = 3,000 1,500 5,500

how can I solve this

Answer 1

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Answer a
Periodic FIFO
Date	Cost of Goods available for sale	Cost of Goods sold	Inventory Balance
No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
1-Jun	500.00	25.00	12,500.00	500.00	25.00	12,500.00	-	25.00	-
10-Jun	800.00	35.00	28,000.00	800.00	35.00	28,000.00	-	35.00	-
24-Jun	700.00	30.00	21,000.00	500.00	30.00	15,000.00	200.00	30.00	6,000.00
Total	2,000.00		61,500.00	1,800.00		55,500.00	200.00		6,000.00

Cost of Goods sold is $ 55,500.

Ending Inventory is $ 6,000.

Answer b
Periodic Average Costs
Date	No. of Units	Cost per unit	Amount
1-Jun	500.00	25.00	12,500.00
10-Jun	800.00	35.00	28,000.00
24-Jun	700.00	30.00	21,000.00
Cost of Goods available for sale	2,000.00		61,500.00
Average cost		30.75	This is $ 61,500/2,000 units.
Units sold		1,800.00
Cost of Goods sold		$ 55,350.00
Ending Inventory		$   6,150.00

Answer c

Perpetual LIFO

Date	Cost of Goods available for sale	Cost of Goods sold	Inventory Balance
No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
1-Jun							500.00	25.00	12,500.00
8-Jun				400.00	25.00	10,000.00	100.00	25.00	2,500.00
10-Jun	800.00	35.00	28,000.00				100.00	25.00	2,500.00
							800.00	35.00	28,000.00
14-Jun				800.00	35.00	28,000.00	100.00	25.00	2,500.00
24-Jun	700.00	30.00	21,000.00				100.00	25.00	2,500.00
							700.00	30.00	21,000.00
29-Jun				600.00	30.00	18,000.00	100.00	25.00	2,500.00
							100.00	30.00	3,000.00
Ending Inventory				1,800.00		56,000.00	200.00		5,500.00

Cost of Goods sold is $ 56,000.

Ending Inventory is $ 5,500.