Question

inventory information for Part 311 of Tamarisk Corp. discloses the following information for the month of June.

June   1		Balance		302 units @ $15		June 10		Sold		200 units @ $35
11		Purchased		796 units @ $18		15		Sold		499 units @ $37
20		Purchased		501 units @ $19		27		Sold		301 units @ $40

(a)

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

		(1) LIFO		(2) FIFO
Cost of Goods Sold		$enter a dollar amount		$enter a dollar amount
Ending Inventory

Answer 1

	Unit	Unit Cost	Total Cost
Beg Inv	302	15	4530
Purchase 1	796	18	14328
Purchase 2	501	19	9519
Total	1599		28377

Sales unit = 200+499+301 = 1000 Units

Calculate following

	LIFO	FIFO
Cost of goods sold	9519+499*18 = 18501	4530+698*18 = 17094
Ending inventory	28377-18501 = 9876	28377-17094 = 11283