Question

Kingbird, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 130 units were sold. May 1 15 24 Unit Cost $13 1 6 Units 60 50 70 180 Inventory Purchases Purchases Totals Total Cost $780 800 1,190 $2,770 Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. FIFO LIFO Ending inventory at May 31 Cost of goods sold

Answer 1

Cost of goods available for sale statement

Date	Units	Unit Cost	Total Cost
May-01	60	13	780
May-15	50	16	800
May-24	70	17	1190
Total	180		2,770

Number of units available for sale = 180

Number of units sold = 130

Ending inventory = Number of units available for sale - Number of units sold

= 180-130

= 50 units

FIFO Method

Calculation of ending inventory cost

Date	Units	Unit Cost	Total Cost
May-24	50	17	850

Ending inventory = $850

Cost of goods sold = Cost of goods available for sale - Ending inventory

= 2,770-850

= $1,920

LIFO Method

Calculation of ending inventory cost

Date	Units	Unit Cost	Total Cost
May-1	50	13	650

Ending inventory = $650

Cost of goods sold = Cost of goods available for sale - Ending inventory

= 2,770-650

= $2,120

	FIFO	LIFO
Ending inventory at May 31	$850	$650
Cost of goods sold	1,920	2,120

Kindly comment if you need further assistance.

Thanks‼!