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13 March, 12:58

Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold. Unit Units Cost Total CostMay-1 Inventory 30 $8 $240 15 Purchases 25 11 27524 Purchases 35 12 420 Totals 90 $935 Compute the ending inventory on May 31 and cost of goods sold using the FIFO and LIFO methods.

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  1. 13 March, 13:06
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    FIFO ending inventory 300 dollars

    LIFO ending ivnentory 200 dollars

    Explanation:

    May-1 Inventory 30 units at $8 $ 240

    15 Purchases 25 units at $11 $ 275

    24 Purchases 35 units at $12 $ 420

    Total good available 90 units for a value of $935

    We sale 65 units therefore, 25 units remains in our ending inventory.

    FIFO will sale the first units leading the newest for inventory

    So May 24th would be our ending inventory:

    25 units x $12 = $300

    LIFO will sale the newest and leave the oldest as inventory.

    May 1st units are still at inventory according to LIFO

    25 units x $8 = $200
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