Question

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

June 1	Balance	25 units at $60
6	Sale	20 units
8	Purchase	20 units at $61
16	Sale	10 units
20	Purchase	20 units at $62
23	Sale	25 units
30	Purchase	15 units at $63

Calculate the cost of the ending inventory at June 30, using (a) the first-in, first-out (FIFO) method and (b) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

(a) First-In, First-Out (FIFO):

Date: June	Quantity		Unit Price	Total cost
		units at	$	$
		units at	$
BLANK	Total			$

(b) Last-In, First-Out (LIFO):

Date: June	quantity		unit price	total cost of each lot
		units at	$	$
		units at	$
		units at	$
BLANK	Total			$

Answer 1

As Per FIFO Method
Date	opening stock			purchase			sale			closing stock
June	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1	25	60	1500							25	60	1500
6							20	60	1220	5	60	300
8	5	60	300	20	61	1220				5	60	300
										20	61	1220
16	5	60	300				5	60	300
	20	61	1220				5	61	305	15	61	915
20	15	61	915	20	62	1240				15	61	915
										20	62	1240
23	15	61	915				15	61	915
	20	62	1240				10	62	620	10	62	620
30	10	62	620	15	63	945				10	62	620
										15	63	945
										25		1565

Cost of Ending inventory as per FIFO: 25 Unit and total Value $1565

As per LIFO Method
Date	opening stock			purchase			sale			closing stock
June	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1	25	60	1500							25	60	1500
6							20	60	1220	5	60	300
8	5	60	300	20	61	1220				5	60	300
										20	61	1220
16	5	60	300				10	61	610	5	60	300
	20	61	1220							10	61	610
20	5	60	300	20	62	1240				5	60	300
	10	61	610							10	61	610
										20	62	1240
23	5	60	300
	10	61	610				20	62	1240	5	60	300
	20	62	1240				5	61	305	5	61	305
30	5	60	300							5	60	300
	5	61	305	15	63	945				5	61	305
										15	63	945
										25		1550

Cost of Ending inventory as per LIFO: 25 Unit and total Value $1550