Question

The Wright Company recorded the following inventory information during the month of October:

	UNITS	UNIT COST	TOTAL COST	UNITS ON HAND
Balance on October 1	2,000	$1.00	$2,000	2,000
Purchased on October 8	1,200	$3.00	$3,600	3,200
Sold on October 20	1,500			1,700
Purchased on October 22	2,000	$4.00	$8,000	3,700
Sold on October 28	2,200			1,500
Purchase on October 29	1,000	$5.00	$5,000	2,500

Part B: Using the partially computed tables on the next three pages, compute the cost of goods sold and the cost of the 2,500 units in ending inventory under each of the assumptions given above.

LIFO – Perpetual

Date	Purchases			Sales			Inventory on Hand
	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total
10/1							2,000	$1.00	$2,000
10/8 Purchased 1,200 units	1,200	$3.00	$3,600				2,000 1,200 3,200	$1.00 $3.00	$2,000 $3,600 $5,600
10/20 Sold 1,500 units				1,200    300 1,500	$3.00 $1.00	$3,600 $   300 $3,900	1,700	$1.00	$1,700
10/22 Purchased 2,000 units
10/28 Sold 2,200 units
10/29 Purchased 1,000 units
TOTALS

Answer 1

Date	Purchases			Sales			Inventory on Hand
	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total
10/1							2,000	$1.00	$2,000
10/8 Purchased 1,200 units	1,200	$3.00	$3,600				2,000 1,200 3,200	$1.00 $3.00	$2,000 $3,600 $5,600
10/20 Sold 1,500 units				1,200    300 1,500	$3.00 $1.00	$3,600 $   300 $3,900	1,700	$1.00	$1,700
10/22 Purchased 2,000 units	2,000	$4.00	$8,000				1,700 2,000 3,700	$1.00 $4.00	$1,700 $8,000 $9,700
10/28 Sold 2,200 units				2,000 200 2,200	$4.00 $1.00	$8,000 $200 $8,200	1,500	$1.00	$1,500
10/29 Purchased 1,000 units	1,000	$5.00	$5,000				1,500 1,000 2,500	$1.00 $5.00	$1,500 $5,000 $6,500
TOTALS	4,200		$16,600	3,700		$12,100	2,500		$6,500

Cost of goods sold = $12,100, Ending inventory = $6,500