a. Inventory, Beginning 300 $ 12 For the year: b. Purchase, April 11 900 10 c. Purchase, June 1 800 13 d. Sale, May 1 (sold for $40 per unit) 300 e. Sale, July 3 (sold for $40 per unit) 600 f. Operating expenses (excluding income tax expense), $19,500 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

Question

Kadyn Pearson

Business

18 August, 13:34

a. Inventory, Beginning 300 $ 12 For the year: b. Purchase, April 11 900 10 c. Purchase, June 1 800 13 d. Sale, May 1 (sold for $40 per unit) 300 e. Sale, July 3 (sold for $40 per unit) 600 f. Operating expenses (excluding income tax expense), $19,500 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

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Answers (1)

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Sanai Forbes · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Inventory, Beginning: 300 units at $ 12

For the year:

Purchase, April 11: 900 units at $10

Purchase, June 1: 800 units at $13

Sale, May 1 (sold for $40 per unit) 300

Sale, July 3 (sold for $40 per unit) 600

Units sold = 900 units

Inventory = 2000 - 900 = 1,100 units

We will assume periodic inventory:

FIFO (first-in, first-out)

COGS = 300*12 + 600*10 = $9,600

Inventory = 300*10 + 800*13 = $13,400

LIFO (last-in, first-out)

COGS = 800*13 + 100*10 = $11,400

Inventory = 800*10 + 300*12 = $11,600