Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 290 units between January 16 and 23. Units Unit Cost Total Cost $16,8e0 36,000 21,000 Date Beginning Inventory Purchase Purchase January 1 January 15 January 24 240 450 210 100 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods FIFO LIFO Cost of Ending Inventory Cost of Goods Sold 53,000 $ 48,800 20,800 27,400

Answer 1

C G M A B D E F H I K L FIFO-PERPETUAL 1 Units Available for Sale Cost of Goods Sold Ending Inventory 2 Description Date Units Units Unit Cost Total Cost Unit Cost Total Cost Units Unit Cost Total Cost Beginning 15-Jan Purchase 240 $ 240 $ 70 S 70 $ 80 $ 80 $ 1-Jan 70 $ 240 16.800 16,800 4 16.800 Cost of Goods Sold $ 20,800 36,000 Ending Inventory 80 $ 36,000 S 450 5 450 $53,000 6 240 $ 50 $ 70 $ 16-Jan 16,800 400 32,000 7 Sale 8 23-Jan 80 4,000 80 S 100 S 24-Jan Purchase 210 100 21,000 400 $ 32,000 210 21,000 10 Totals 900 $ 290 610 S 11 73,800 20,800 53,000 12 LIFO-PERPETUAL 13 Units Available for Sale Cost of Goods Sold Ending Inventory 14 Description Date Units Unit Cost Units Unit Cost Total Cost Units Unit Cost Total Cost Total Cost 15 70 16,800 240 $ 70 $ 16,800 Beginning 15-Jan Purchase 240 $ 1-Jan 16 16,800 Cost of Goods Sold $ 23,200 36,000 Ending Inventory 70 $ 450 S 80 $ 36,000 240 17 80 450 $50,600 18 16-Jan Sale 70 $ 80 $ 290 $ 80 $ 23,200 240 16,800 19 23-Jan 160 12,800 20 24-Jan Purchase 70 $ 16,800 210 100 21,000 240 21 80 $ 100 $ 160 $ 12,800 22 210 $ 21,000 23 Totals 900 73,800 290 S 23,200 610 50,600 24 25