Question

perch company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using both LIFO and FIFO

Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 150 units @ $10.00 May 5 Purchase 220 units @ $12.00 May 10 Sales 140 units @ $20.00 May 15 Purchase 100 units @ $13.00 May 24 Saled 150 units @ $21.00

Answer 1

Perpetual LIFO :
Date	Purchase			Sale ( at cost )			Balance
	Units	Unit cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
May 1							150	10	1500
May 5	220	12	2640				150	10	1500
							220	12	2640
May 10				140	12	1680	150	10	1500
							80	12	960
May 15	100	13	1300				150	10	1500
							80	12	960
							100	13	1300
May 24				100	13	1300	150	10	1500
				50	12	600	30	12	360

Cost of goods sold = 1680 + 1300 + 600

3580

Perpetual FIFO :
Date	Purchase			Sale ( at cost )			Balance
	Units	Unit cost	Total cost	Units	Unit cost	Total cost	Units	Unit cost	Total cost
May 1							150	10	1500
May 5	220	12	2640				150	10	1500
							220	12	2640
May 10				140	10	1400	10	10	100
							220	12	2640
May 15	100	13	1300				10	10	100
							220	12	2640
							100	13	1300
May 24				10	10	100	80	12	960
				140	12	1680	100	13	1300

Cost of goods sold = 1400 + 100 + 1680

3180