Question

Sales during the year were 700 units. Beginning inventory was 400 units at a cost of $10 per unit. Purchase 1 was 500 units at $12 per unit. Purchase 2 was 300 units at $14 per unit. Required: a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.) Periodic FIFO Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods # of Available for unit units Sale $ 0 Cost per Cost per # of units sold Cost of Goods Sold Inventory Balance # of units Cost per Ending in ending unit Inventory inventory unit Beg. Inventory Purchases: Purchase 1 Purchase 2 0 0 Total 0 $ 0 0 $ 0 0 $ 0 b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.) Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale # of Cost of Goods Available for units unit Sale 0 Cost per Cost per # of units sold Cost per Inventory Balance # of units Ending in ending unit Inventory inventory Cost of Goods Sold unit Beg. Inventory Purchases: Purchase 1 0 Purchase 2 0 Total 0 $ 0 0 $ 0 0 $ 0

Answer 1

PARTICULARS	FIFO	LIFO
COST OF GOODS SOLD( CGS)	7,600.00	9,000.00
CLOSING INVENTORY	6,600.00	5,200.00
WORKING NOTES:
COST OF GOODS SOLD = OPENING INVENTORY + PURCHASE - CLOSING INVENTORY
PARTICULARS	FIFO	LIFO
OPENING INVENTORY	$4,000.00	$4000.00
PURCHASE OF INVENTORY	$10,200.00	$10200.00
CLOSING INVENTORY	$ 6,600.00	$5,200.00
COST OF GOODS SOLD =	$7600.00	$9000.00
FIFO
COMPUTATION OF COST OF GOODS SOLD
SALES QTY	COST	AMOUNT($)
400.00	10.00	4,000.00
300.00	12.00	3,600.00
700		7,600.00
.
COMPUTATION OF CLOSING INVENTORY
QTY	COST	AMOUNT($)
200.00	12.00	2400.00
300.00	14.00	4200.00
500.00		6600.00
CALCULATION UNDER LIFO
PARTICULARS	QTY	PRICE	AMOUNT($)
BEGINNING INVENTORY	400.00	$         10.00	$        4,000.00
PURCHASE 1	500.00	$         12.00	$        6,000.00
PURCHASE 2	300.00	$         14.00	$        4,200.00
CLOSING INVENTORY ( 400+500+300-700)	500.00
LIFO
COMPUTATION OF COST OF GOODS SOLD
SALES QTY	COST	AMOUNT($)
300.00	14.00	4200.00
400.00	12.00	4800.00
700.00		9000.00
.
COMPUTATION OF CLOSING INVENTORY
QTY	COST	AMOUNT($)
100.00	12.00	1200.00
400.00	10.00	4000.00
500.00		5200.00