Question

97. Salmone Company reported the following purchases and sales for its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using LIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	310 units @ $16
5	Purchase	300 units @ $18
10	Sales		220 units @ $26
15	Purchase	180 units @ $19
24	Sales		170 units @ $27

66. A company had the following purchases during its first year of operations:

	Purchases
January:	11 units at $121
February:	21 units at $131
May:	16 units at $141
September:	13 units at $151
November:	11 units at $161

On December 31, there were 31 units remaining in ending inventory. These 31 units consisted of 3 from January, 5 from February, 7 from May, 5 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?

72. A company had the following purchases during its first year of operations:

  

	Purchases
January:	11 units at $121
February:	21 units at $131
May:	16 units at $141
September:	13 units at $151
November:	11 units at $161

On December 31, there were 31 units remaining in ending inventory. These 31 units consisted of 3 from January, 5 from February, 7 from May, 5 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?

Answer 1

97)

Computation of cost of goods sold by using LIFO methods:

Workings:

May 01, Beginning inventory 310 units @$16 = $4960

Purchase:

May 05, 300 units @$18 = $5400

May 15, 180 units @$19 = $3420

Sales:

May 10, 220 units

May 24, 170 units

Cost of goods sold = (220 units@$18) + (170 units@$19) = $3960 + $3230 = $7190.

66)

Computation of cost of ending inventory by using Specific identification Methods:

Ending inventory = 31 units

Specification:

3 units @ $121 = $363

5 units @ $131 = $655

7 units @ $141 = $987

5 units @ $151 = $755

11 units @ $161 = $1771

Cost of ending inventory = $363+$655+$987+$755+$1771 = $4531.

72)

Computation of cost of ending inventory by using Specific identification Methods:

Ending inventory = 31 units

Specification:

3 units @ $121 = $363

5 units @ $131 = $655

7 units @ $141 = $987

5 units @ $151 = $755

11 units @ $161 = $1771

Cost of ending inventory = $363+$655+$987+$755+$1771 = $4531.