Question

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FIFO and LIFO costs under perpetual inventory system The following units of an item were available...

FIFO and LIFO costs under perpetual inventory system

The following units of an item were available for sale during the year:

Beginning inventory 8,100 units at $200
Sale 5,200 units at $320
First purchase 15,300 units at $203
Sale 12,700 units at $320
Second purchase 16,300 units at $213
Sale 13,700 units at $320

The firm uses the perpetual inventory system, and there are 8,100 units of the item on hand at the end of the year.

FIFO and LIFO costs under perpetual inventory system
The following units of an item were available for sale during the year:
Quantity Price
Beginning inventory 8,100 $200
Sale 5,200 $320
First purchase 15,300 $203
Sale 12,700 $320
Second purchase 16,300 $213
Sale 13,700 $320
Ending inventory 8,100
Using formulas and cell references, perform the required analysis, and input your answers into the Inventory Cost column. Transfer the numeric results for the green entry cells (B16:B17) into the appropriate fields in CNOWv2 for grading.
Inventory Cost Formulas
FIFO method
LIFO method
  1. What is the total cost of the ending inventory according to FIFO? Round your answer to the nearest dollar.

    $  fill in the blank 2

  2. What is the total cost of the ending inventory according to LIFO? Round your answer to the nearest dollar.

    $  fill in the blank 3

Solutions

Expert Solution

FIFO METHOD - PERPETUAL METHOD
PURHASES COST OF GOODS SOLD ENDING INVENTORY
Date Particulars Units Rate Total Cost Units Rate Total Cost Units Rate Total Cost
----- Beginning inventory 8100 $            200 $1,620,000
----- Sales 5200 $                200 $   1,040,000 2900 $            200 $    580,000
----- First Purchases 15300 $                         203 $           3,105,900 2900 $            200 $    580,000
15300 $            203 $3,105,900
----- Sales 2900 $                200 $      580,000
9800 $                203 $   1,989,400 5500 $            203 $1,116,500
----- Second Purchases 16300 $                         213 $           3,471,900 5500 $            203 $1,116,500
16300 $            213 $3,471,900
----- Sales 5500 $                203 $   1,116,500
8200 $                213 $   1,746,600 8100 $            213 $1,725,300
Total 31600 $6,577,800 31600 $6,472,500 8100 $1,725,300
Answer = Ending inentory = $ 1,725,300
LIFO METHOD - PERPETUAL METHOD
PURHASES COST OF GOODS SOLD ENDING INVENTORY
Date Particulars Units Rate Total Cost Units Rate Total Cost Units Rate Total Cost
----- Beginning inventory 8100 $            200 $1,620,000
----- Sales 5200 $                200 $   1,040,000 2900 $            200 $    580,000
----- First Purchases 15300 $                         203 $           3,105,900 2900 $            200 $    580,000
15300 $            203 $3,105,900
----- Sales 12700 $                203 $   2,578,100 2900 $            200 $    580,000
2600 $            203 $    527,800
----- Second Purchases 16300 $                         213 $           3,471,900 2900 $            200 $    580,000
2600 $            203 $    527,800
16300 $            213 $3,471,900
----- Sales 13700 $                213 $   2,918,100 2900 $            200 $    580,000

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