Question

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.

Answer 1

Answer:

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