Question

assumptions EIRO, LIFO, and weighted average using a periodic The following data are available for Sellco for the fiscal year ended on Cost flow assun system The fo January 31, 2017: Problem 5.34 LO 7,8 Sales ...... Beginning inventory ....... Purchases, in chronological order.... . . .. 3.200 units 1.000 units @ $8 1.200 units @ $10 1.800 units @ $12 800 units $16 Required: a. Calculate costi culate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system): 1. FIFO. 2. LIFO.

Answer 1

In units FIFO METHODE Cost of goods sold In Dollars 20,000 32,000 Ending inventory 1,400 LIFO METHODE Cost of goods sold 40,000 Ending inventory 1,400 12,000 Workings In Dollars LIFO METHODE In units 3,200 In Dollars FIFO METHODE In units Sales 3,200 Beginning inventory ($8) 1,000 Purchases ($10) 1,200 Purchases ($12) 1,000 3,200 800 8,000 12,000 12,000 32,000 Sales Purchases ($16) Purchases ($12) Purchases ($10) 1,600 800 3,200 12,800 19,200 8,000 40,000 Ana Ending inventory Sales Beginning inventory Purchases Ending inventory (3,200) 1,000 3,600 1,400 Ending inventory Sales Beginning inventory Purchases Ending inventory (3,200) 1,000 3,600 1,400 Valuation of closing inventory Purchases ($12) Purchases ($16) 600 800 1,400 7,200 12,800 20,000 Valuation of closing inventory Purchases ($10) Beginning inventory ($8) 400 1,000 1,400 4,000 8,000 12,000 Purchases Purchases ($10) Purchases ($12) Purchases ($16) 1,200 1,600 800 3,600 12,000 19,200 12,800 44,000 Purchases Purchases ($10) Purchases ($12) Purchases ($16) 1,200 1,600 800 3,600 12,000 19,200 12,800 44,000 Cost of goods sold (+) Beginning inventory (+) Purchases (-) Ending inventory 1,000 3,600 1,400 3,200 8,000 44,000 20,000 32,000 Cost of goods sold Beginning inventory Purchases Ending inventory 1,000 3,600 1,400 3,200 8,000 44,000 12,000 40,000