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 Beginning Inventory January 1 140 $ 80 $11,200 January 15 330 90 29,700 January 24 250 110 27,500 Date Purchase Purchase 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

Answer 1

	1. FIFO Method
Date	Particulars	Quantity	Rate $	Total $
Jan-01	Beginning inventory	140	80	11,200
Jan-15	Purchases	330	90	29,700
Jan-24	Purchases	250	110	27,500
	Sub total	720		68,400
Jan 16 to Jan 23	Sales ( Cost of goods sold)	-290	80/90	(24,700)
Jan-31	Ending inventory	430		43,700
	2. LIFO Method
Date	Particulars	Quantity	Rate $	Total $
Jan-01	Beginning inventory	140	80	11,200
Jan-15	Purchases	330	90	29,700
Jan-24	Purchases	250	110	27,500
	Sub total	720		68,400
Jan 16 to Jan 23	Sales ( Cost of goods sold)	-290	110/90	(31,100)
Jan-31	Ending inventory	430		37,300