Question

III. Cost of Goods Sold & Inventory (LLH 7) Cost of Goods Sold FIFO LIFO Hodor Company is a wholesale distributor of doors. He replenishes his supply of doors on the 15th of each month and has sales only on the last day of cach month. The following information is available for 2019: Periodic Perpetual 2 pts 2 pts 3 pts 3 pts Beginning Inventory Purchase, Jan. 15 Purchase, Feb. 15 Purchase, Mar. 15 Purchase, April 15 Purchase, May 15 Purchase, June 15 Purchase, July 15 Purchase, Aug. 15 Purchase, Sept. 15 Purchase, Oct. 15 Purchase, Nov. 15 Purchasc, Dec. 15 Sale, Jan. 31 Sale, Feb. 28 Sale, Mar. 31 Sale, April 30 Sale, May 31 Sale, June 30 Sale, July 31 Sale, Aug. 31 Sale, Sept. 30 Sale, Oct. 31 Sale, Nov. 30 Sale, Dec. 31 Units Unit Cost 50,000 $ 20.00 20,000 $ 22.00 25,000 $ 24.00 30,000 $ 26.00 30,000 $ 28.00 40,000 $ 30.00 40,000 $ 32.00 50,000 $ 34.00 50,000 $ 36.00 40,000 $ 38.00 20,000 $ 40.00 20,000 $ 42.00 20,000 S 44.00 20,000 30,000 30,000 40,000 35,000 40,000 40.000 50,000 60,000 20,000 10,000 10,000 Required: Determine Cost of Goods sold for 2019 using the periodic and perpetual method for (a) FIFO and (b) LIFO.

Answer 1

Cost of Goods Sold

	FIFO	LIFO
Perpetual	$11,560,000	$12,220,000
Periodic	$11,960,000	$12,680,000

E 2 2 A B C D FIFO - Periodic Method Available for Sales 3 Date Units Unit Cost Total 50,000 $ 20 $ 1,000,000 5 15-Jan 20,000 $ 22 $ 440,000 6 15-Feb 25,000 $ 24 $ 600,000 7 15-Mar 30,000 $ 20 $ 780,000 8 15-Apr 30,000 $ 28 $ 840,000 9 15-May 40,000 $ 30 $ 1.200.000 10 15-Jun 40,000 $ 32 $ 1,280,000 11 15-Jul 50,000 $ 34 $ 1,700,000 12 15-Aug 50,000 $ 36 $ 1,800,000 13 15-Sep 40,000 $ 38 $ 1,520,000 14 15-Oct 20,000 $ 40 $ 800,000 15 15-Nov 20,000 $ 42 $ 840,000 16 15-Dec 20,000 $ 44 $ 880,000 17 Total 435,000 $13,680,000 18 19 Cost of Goods Sold 20 Date Units Unit Cost Total 21 Beginning 50,000 $ 20 $ 1,000,000 22 15-Jan 20,000 $ 22 $ 440,000 23 15-Feb 25,000 $ 24 $ 600,000 24 15-Mar 30,000 $ 26 $ 780,000 25 15-Apr 30,000 $ 28 $ 840,000 26 15-May 40,000 $ 30 $ 1,200,000 27 15-Jun 40,000 $ 32 $ 1,280,000 28 15-Jul 50,000 $ 34 $ 1,700,000 29 15-Aug 50,000 $ 36 $ 1,800,000 30 15-Sep 40,000 $ 38 $ 1,520,000 31 15-Oct 20,000 $ 40 $ 800,000 32 Total 395,000 $11,960,000 33 34. F G H I LIFO - Periodic Method Available for Sales Date Units Unit Cost Total Beginning 50,000 $ 20 $ 1,000,000 15-Jan 20,000 $ 22$ 440,000 15-Feb 25,000 $ 24 $ 600,000 15-Mar 30,000 $ 20 $ 780,000 15-Apr 30,000 $ 28 $ 840,000 15-May 40,000 $ 30 $ 1.200,000 15-Jun 40,000 $ 32 $ 1,280,000 15-Jul 50,000 $ 34 $ 1,700,000 15-Aug 50,000 $ 36 $ 1,800,000 15-Sep 40,000 $ 38 $ 1,520,000 15-Oct 20,000 $ 40 $ 800,000 15-Nov 20,000 $ 42 $ 840,000 15-Dec 20,000 $ 44 $ 880,000 Total 435,000 $13,680,000 Date 15-Dec 15-Nov 15-Oct 15-Sep 15-Aug 15-Jul 15-Jun 15-May 15-Apr 15-Mar 15-Feb 15-Jan Total Cost of Goods Sold Units Unit Cost Total 20,000 $ 44 $ 880,000 20,000 $ 42 $ 840,000 20,000 $ 40 $ 800,000 40,000 $ 38 $ 1,520,000 50,000 $ 36 $ 1,800,000 50,000 $ 34 $ 1,700,000 40,000 $ 32 $ 1,280,000 40,000 $ 30 $ 1,200,000 30,000 $ 28 $ 840,000 30,000 $ 26 $ 780,000 25,000 $ 24 $ 600,000 20,000 $ 22 $ 440,000 385,000 $12,680,000

I K L M N O S T U 1 2 P Q R FIFO - Perpetual Cost of Goods Sold Unit Unit Cost Total Purchases 4. 5 Date 1-Jan 15-Jan Description Beginning Purchases 20,000 $ 22 $ 440,000 6 31-Jan Sales 20,000 $ 20 $ 400,000 7 8 9 10 15-Feb Purchases 25,000 $ 24 $ 600,000 11 30,000 $ 20 $ 600,000 30,000 $ 20 $ 780,000 28-Feb Sales 13 14 15-Mar Purchases 15 16 17 31-Mar Sales 18 19 15-Apr Purchases 20 Ending Inventory Unit Unit Cost Total 50,000 $ 20 $1,000,000 50,000 $ 20 $1,000,000 20,000 $ 22 $ 440,000 30,000 $ 20 $ 600,000 20,000 $ 22 $ 440,000 30,000 $ 20 $ 600,000 20,000 $ 22 $ 440,000 25,000 $ 24 $ 600,000 20,000 $ 22 $ 440,000 25,000 $ 24 $ 600,000 20,000 $ 22 $ 440,000 25,000 $ 24 $ 600,000 30,000 $ 20 $ 780,000 15,000 $ 24 $ 360,000 30,000 $ 20 $ 780,000 15.000 $ 24 $ 360,000 30,000 $ 20 $ 780,000 30,000 $ 28 $ 840,000 5,000 $ 20 $ 130,000 30,000 $ 28 $ 840,000 5,000 $ 26 $ 130,000 30,000 $ 28 $ 840,000 40,000 $ 30 $1,200,000 40,000 $ 30 $1,200,000 20,000 $ 10,000 $ 22 $ 24 $ 440,000 240,000 30,000 $ 28 $ 840,000 21 22 30-Apr Sales 15,000 25,000 $ $ 24 26 $ $ 360,000 650,000 23 24 15-May Purchases 40,000 $ 30 $ 1,200,000 25 26 Sales 5,000 $ 30,000 $ 20 $ 28 $ 130,000 840,000 27 31-May 28 29 15-Jun 30 31 30-Jun 32 15-Jul Purchases 40,000 $ 32 $ 1,280,000 40,000 $ 30 $ 1.200,000 Sales Purchases 40,000 $ 40,000 $ 40,000 $ 40,000 $ 50,000 $ 50,000 $ 30 32 32 32 34 34 $1,200,000 $1,280,000 $1,280,000 $1,280,000 $1,700,000 $1,700,000 50,000 $ 34 $ 1,700,000 33 34 31-Jul Sales 40,000 $ 32 | $ 1,280,000

K L M S T U WN - N O P Q R FIFO - Perpetual Purchases Cost of Goods Sold Unit Cost Total Unit Unit Cost Total 40,000 $ 32 $ 1,280,000 $ 36 $ 1,800,000 Unit 50,000 Ending Inventory Unit Unit Cost Total 50,000 $ 34 $1,700,000 50,000 $ 34 $1,700,000 50,000 $ 36 $1,800,000 50,000 $ 36 $1,800,000 50,000 $ 36 $1,800,000 40,000 $ 38 $1,520,000 30,000 $ 38 $1,140,000 50,000 $ 34 $ 1,700,000 40,000 $ 38 $ 1,520,000 50,000 10,000 $ $ 36 38 $ 1,800,000 $ 380,000 20,000 $ 40 $ 800,000 Date Description 31-Jul | Sales 35 15-Aug Purchases 36 37 31-Aug | Sales 38 15-Sep Purchases 39 40 30-Sep Sales 41 42 15-Oct Purchases 43 44 31-Oct | Sales 45 46 15-Nov | Purchases 47 48 49 30-Nov Sales 50 51 15-Dec Purchases 52 53 31-Dec Sales 55 20,000 $ 38 $ 760,000 20,000 $ 42 $ 840,000 10,000 $ 38 $ 380,000 30,000 $ 20,000 $ 10,000 $ 20,000 $ 10,000 $ 20.000 $ 20,000 $ 20.000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 10,000 $ 20,000 $ 20,000 $ 50,000 38 $1,140,000 40 $ 800,000 38 $ 380,000 40 $ 800,000 38 $ 380,000 40 $ 800,000 42 $ 840,000 40 $ 800,000 42 $ 840,000 40 $ 800,000 42 $ 840,000 44 $ 880,000 40 $ 400,000 42 $ 840,000 44 $ 880,000 $2,120,000 20,000 $ 44 $ 880,000 10,000 $ 40 $ 400,000 57 Totals 385,000 $12,680,000 385,000 $11,560,000

W X Y Z AA AE AF AG 1 AB AC AD LIFO - Perpetual Cost of Goods Sold Unit Unit Cost Total Date Description " Purchases Unit Cost Unit Total 4 1 -Jan 15-Jan Purchases 20,000 $ 22 $ 440,000 Ending Inventory Unit Unit Cost Total 50,000 $ 20 $1,000,000 50,000 $ 20 $1,000,000 20,000 $ 22 $ 440,000 50,000 $ 20 $1,000,000 50,000 $ 20 $1,000,000 25,000 $ 24 $ 600,000 45,000 $ 20 $ 900,000 20,000 $ 22 $ 440,000 8 31-Jan 15-Feb Sales Purchases 25,000 $ 24 $ 600,000 28-Feb Sales 25,000 $ 5,000 $ 24 $ 20 $ 600,000 100.000 15-Mar Purchases 30,000 $ 26 $ 780,000 10 11 12 13 14 15 30,000 $ 26 $ 780,000 31-Mar 15-Apr Sales Purchases 45,000 30,000 45,000 45,000 30,000 35,000 $ $ $ $ $ $ 20 26 20 20 28 20 $ 900,000 $ 780,000 $ 900,000 $ 900,000 $ 840,000 $ 700,000 30,000 $ 28 $ 840,000 16 17 30-Apr | Sales 30,000 $ 10,000 $ 28 20 $ $ 840,000 200,000 18 19 15-May Purchases 40,000 $ 30 $ 1,200,000 31-May | Sales 35,000 $ 20 21 22 23 30 $ 1,050,000 15-Jun Purchases 40,000 $ 32 $ 1,280,000 24 25 26 30-Jun | Sales 40,000 $ 32 $ 1,280,000 35,000 $ 40,000 $ 35,000 $ 5,000 $ 35,000 $ 5,000 $ 40,000 $ 35,000 $ 5,000 $ 35,000 $ 5,000 $ 50,000 $ 35,000 $ 5,000 $ 10,000 $ 20 30 20 30 20 30 32 20 30 20 30 34 20 30 34 $ 700,000 $1,200,000 $ 700,000 $ 150,000 $ 700,000 $ 150.000 $1,280,000 $ 700,000 $ 150,000 $ 700,000 $ 150,000 $1,700,000 $ 700,000 $ 150,000 $ 340,000 27 28 15-Jul Purchases 50,000 $ 34 $ 1,700,000 29 30 31-Jul Sales 40,000 $ 34 $ 1,360,000 32

W X Y Z AA AE AF AG AB AC AD LIFO - Perpetual Cost of Goods Sold Unit Unit Cost Total 40,000 $ 34 $ 1,360,000 Date Purchases Unit Cost Unit Description Sales Total 31-Jul 32 15-Aug Purchases 50,000 $ 36 $ 1,800,000 33 34 35 36 37 38 Ending Inventory Unit Unit Cost Total 35,000 $ 20 $ 700,000 5,000 $ 30 $ 150,000 10.000 $ 34 $ 340,000 35,000 $ 20 $ 700,000 5,000 $ 30 $ 150,000 10,000 $ 34 $ 340,000 50,000 $ 36 $1,800,000 35,000 $ 20 $ 700,000 5,000 $ 30 $ 150,000 10,000 $ 34 $ 340,000 35,000 $ 20 $ 700,000 5,000 $ 30 $ 150,000 10,000 $ 34 $ 340,000 40,000 $ 38 $1,520,000 30,000 $ 20 $ 600,000 31-Aug | Sales 50,000 $ 36 $ 1,800,000 39 15-Sep Purchases 40,000 $ 38 $ 1,520,000 40 41 42 43 44 45 30-Sep Sales 46 40,000 10,000 5,000 5,000 $ $ $ $ 38 34 30 20 $ 1,520,000 $ 340,000 $ 150.000 $ 100,000 47 48 49 15-Oct Purchases 20,000 $ 40 $ 800,000 50 20,000 $ 40 $ 800,000 51 52 53 31-Oct Sales 15-Nov Purchases 20,000 $ 42 $ 840,000 54 30-Nov Sales 10,000 $ 42 $ 420,000 30.000 $ 20,000 $ 30,000 $ 30,000 $ 20,000 $ 30,000 $ 10,000 $ 30,000 $ 10,000 $ 20,000 $ 30,000 $ 10,000 $ 10,000 $ 50,000 20 $ 600,000 40 $ 800,000 20 $ 600,000 20 $ 600,000 42 $ 840,000 20 $ 600,000 42 $ 420,000 20 $ 600,000 42 $ 420,000 44 $ 880,000 20 $ 600,000 42 $ 420,000 44 $ 440,000 $1,460,000 15-Dec Purchases 20,000 $ 44 55 56 57 58 59 $ 880,000 31-Dec Sales 10,000 $ 44 $ 440,000 60 61 Totals 385.000 $12,680,000 385,000 $12,220,000

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