Question

52. A company had the following purchases and sales during its first year of operations:

	Purchases	Sales
January:	23 units at $205	17 units
February:	33 units at $210	17 units
May:	28 units at $215	21 units
September:	25 units at $220	20 units
November:	23 units at $225	25 units

On December 31, there were 32 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

54. Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	260 units @ $11
5	Purchase	275 units @ $13
10	Sales		195 units @ $21
15	Purchase	155 units @ $14
24	Sales		145 units @ $22

Answer 1

Cost of ending inventory is $6,755 as calculated below:

LIFO-Perpetual
Date	Goods Purchased				Cost of goods sold				Ending Inventory
	Units	@	Cost per unit	Cost of purchase	Units sold	@	Cost per unit	Cost of goods sold	Units	@	Cost per unit	Ending balance
January	23		205	4,715					23		205	4,715
Balance									23			4,715
Jan-31					17		205	3,485	6		205	1,230
Balance									6			1,230
Feb	33		210	6,930					6		205	1,230
									33		210	6,930
Balance									39			8,160
Feb-28					17		210	3,570	6		205	1,230
									16		210	3,360
Balance									22			4,590
May	28		215	6,020					6		205	1,230
									16		210	3,360
									28		215	6,020
Balance									50			10,610
May-31					21		215	4,515	6		205	1,230
									16		210	3,360
									7		215	1,505
Balance									29			6,095
Sept	25		220	5500					6		205	1,230
									16		210	3,360
									7		215	1,505
									25		220	5500
Balance									54			11,595
Sep-30					20		220	4400	6		205	1,230
									16		210	3,360
									7		215	1,505
									5		220	1100
Balance									34			7,195
Nov	23		225	5175					6		205	1,230
									16		210	3,360
									7		215	1,505
									5		220	1100
									23		225	5175
Balance									57			12,370
Nov-30					23		225	5175	6		205	1,230
					2		220	440	16		210	3,360
									7		215	1,505
									3		220	660
Balance									32			6,755