Question

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.

Answer 1

Answer:

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