Question

Kennelly Electric is a wholesaler to commercial builders The data for Product #110 are below: Balance Purchased Sold 110 units $5 - $550 December 31, 20X1 February 10, 20X2 April 14 May 9 July 14 October 21 November 12 Total 80 units @ $6 = $ 480 110 units @ $7 - $ 770 60 units 120 units 1 00 units $8 = $ 800 290 units $2.050 Required: a. Assuming that kennelly uses a periodic inventory system determine the cost of goods sold for 20X2 and the cost of ending inventory at December 31, 20X2 using: FIFO LIFO Cost of Goods Sold Ending Inventory Cost of Goods Sold Ending Inventory b. Assuming that Kennelly uses a perpetual inventory system (where cost of goods sold is determined at each point of sale), determine the cost of goods sold for 20X2 and the cost of ending inventory at December 31, 20X2 using: LIFO FIFO Cost of Goods Sold Ending Inventory Cost of Goods Sold Ending Inventory

Answer 1

255 Units Total Sales Stock Opening Purchased February May 110 Units 290 Units 30 110 100 255 Units 145 Units October Sold Closing FIFO Method FIFO Method COGS From Opening From Feb From May Units Price Value 110 $5.00 $ 550.00 80 $6.00 $ 480.00 65 $7.00 $ 455.00 $1,485.00 COGS From october From May From Feb Units Price 100 $ 8.00 110 $ 7.00 45 $ 7.00 Value $ 800.00 $ 170.00 $ 315.00 $1,885.00 Ending Inventory Units Price From May 45 $7.00 From October 100 $8.00 Value $ 315.00 $ 800.00 $ 1,115.00 Ending Inventory Units Price From feb 35 $ 6.00 From Opening 110 $ 5.00 Value $ 210.00 $ 550.00 $ 760.00