In: Accounting
Calculating LIFO Inventory Values
The Mann Corporation began operations in 2015. Information relating to the company’s purchases of inventory and sales of products for 2015 and 2016 is presented below.
2015 | ||||||
---|---|---|---|---|---|---|
February 1 | Purchase | 200 | units | @ | $10 | per unit |
May 1 | Sold | 120 | units | @ | $25 | per unit |
August 1 | Purchase | 100 | units | @ | $14 | per unit |
October 1 | Sold | 130 | units | @ | $25 | per unit |
2016 | ||||||
---|---|---|---|---|---|---|
February 1 | Purchase | 100 | units | @ | $16 | per unit |
May 1 | Sold | 80 | units | @ | $30 | per unit |
August 1 | Purchase | 100 | units | @ | $18 | per unit |
October 1 | Sold | 100 | units | @ | $35 | per unit |
Calculate the LIFO cost of goods sold and ending inventory for 2015 and 2016 assuming use of (a) the peri- odic method and (b) the perpetual method.
a. LIFO Periodic. Round to nearest whole number.
2015 | |
---|---|
Cost of goods sold | $Answer |
Ending inventory | $Answer |
2016 | |
---|---|
Cost of goods sold | $Answer |
Ending inventory | $Answer |
b. LIFO Perpetual. Round to nearest whole number.
2015 | |
---|---|
Cost of goods sold | $Answer |
Ending inventory | $Answer |
2016 | |
---|---|
Cost of goods sold | $Answer |
Ending inventory | $Answer |