Question

Inventory information for Part 311 of Concord Corp. discloses the following information for the month of June. June 1 Balance June 10 Sold 11 Purchased 299 units @ $11 798 units @ $14 502 units @ $15 15 Sold 197 units @ $27 503 units @ $29 305 units @ $31 20 Purchased 27 Sold 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 $ $ Ending Inventory $ $ e Textbook and Media Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? The ending inventory at LIFO $ e Textbook and Media Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) $ e Textbook and Media

Answer 1

Answer

1 Period System

Last in first out (LIFO)

Cost of goods sold = (502 × 15) + (503 × 14) = $14,572

Ending inventory = (295 × 14) + (299 × 11) = $7,419

First  in first out (FIFO)

Cost of goods sold = (299 × 11) + (706 × 14) = $13,173

Ending inventory = (92 × 14) + (502 × 15) = $8,818

	LIFO	FIFO
Cost of goods sold	14,572	13,173
Ending inventory	7,419	8,818

2 Perpetual LIFO

Ending inventory

= (102 × 11) + (295 × 14) + (197 × 15) = $8,207

Ending inventory under perpetual LIFO is $8,207.

3 perpetual FIFO

Sales = (197 × 27) + (503 × 29) + (305 × 31) = $29,361

Cost of goods sold

= (299 × 11) + (706 × 14) = $13,173

No difference between cost of goods sold and ending inventory under perpetual and periodic FIFO.

Gross profit = 29,361 - 13,173 = $16,188

$16,188 is gross profit and $13,173 is cost of goods sold under perpetual FIFO.

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