Question

Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method

	Total Units	Unit Cost	Total Cost
Beginning inventory on hand
1-Jan	60,000	$2.00	$120,000
Purchases during month
5-Jan	103,600	$2.00	$207,200
20-Jan	293,900	$2.10	$617,190
Sales of inventory
25-Jan	383,900
Beginning inventory at
1-Feb	73,600
Purchases during month
8-Feb	282,200	$2.20	$620,840
23-Feb	153,500	$2.60	$399,100
Sales of inventory
27-Feb	407,600
Ending Inventory	101,700
LIFO
Jan		Feb
Cost of goods sold		Cost of goods sold
Ending inventory		Ending inventory

Answer 1

• All working forms part of the answer
• ANSWER

LIFO
Jan		Feb
Cost of goods sold	$ 797,190	Cost of goods sold	$ 958,120
Ending inventory	$ 147,200	Ending inventory	$ 209,020

• Working

----January

Schedule of Cost of Merchandise Sold
LIFO METHOD
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Jan-01							60000	$         2.00	$           120,000.00
Jan-05	103600	$              2.00	$ 207,200.00				60000	$         2.00	$           120,000.00
							103600	$         2.00	$           207,200.00
Jan-20	293900	$              2.10	$ 617,190.00				60000	$         2.00	$           120,000.00
							103600	$         2.00	$           207,200.00
							293900	$         2.10	$           617,190.00
Jan-25				293900	$         2.10	$      617,190.00	60000	$         2.00	$           120,000.00
				90000	$         2.00	$      180,000.00	13600	$         2.00	$             27,200.00
Balance	397,500		$ 824,390.00	383,900		$      797,190.00	73,600		$           147,200.00

---February

Schedule of Cost of Merchandise Sold
LIFO METHOD
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Feb-01							73600	$         2.00	$           147,200.00
Feb-08	282200	$              2.20	$       620,840.00				73600	$         2.00	$           147,200.00
			$                      -				282200	$         2.20	$           620,840.00
Feb-23	153500	$              2.60	$       399,100.00				73600	$         2.00	$           147,200.00
							282200	$         2.20	$           620,840.00
							153500	$         2.60	$           399,100.00
Feb-27				153500	$         2.60	$      399,100.00	73600	$         2.00	$           147,200.00
				254100	$         2.20	$      559,020.00	28100	$         2.20	$             61,820.00
Balance	435,700		$   1,019,940.00	407,600		$      958,120.00	101,700		$           209,020.00