Question

ses a periodic inventory system. Its records show the following for the month of May, in which 166 units were sold. Units Unit Cost Total Cost May 1 Inventory 73 $9 $657 15 Purchases 61 12 732 24 Purchases 85 13 1,105 Totals 219 $2,494 Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. FIFO   LIFO Ending inventory at May 31 Cost of goods sold   FIFo LIFO

Answer 1

Ending Inventory :

FIFO:

Particulars	Purchases	Sales	Balance
May 1 Beginning inventory	73 units * $9 = $657		$657
May 15 Purchases	61 * $12 = 732		73 units * $9 = $657 61 units * $12 = $732
May 24 Purchases	85 * $13 = 1,105		73 units * $9 = $657 61 units * $12 = $732 85 units * $13 = $1,105
May 30 sales		166 units 73 units * $9 = $657 61 units * $12 = $732 32 units * $13 = $ 416	53 units * $13 = $ 689 (Ending inventory)

LIFO:

Particulars	Purchases	Sales	Balance
May 1 Beginning inventory	73 units * $9 = $657		$657
May 15 Purchases	61 * $12 = 732		73 units * $9 = $657 61 units * $12 = $732
May 24 Purchases	85 * $13 = 1,105		73 units * $9 = $657 61 units * $12 = $732 85 units * $13 = $1,105
May 30 sales		166 units 85 units * $13 = $1,105 61 units * $12 = $732 20 units * $9 = $180	53 units * $9 = $477 (Ending inventory)

Cost of goods sold:

= Beginning Inventory + Purchases during the period – Ending Inventory.

FIFO = $657 + ($735 + 1105) - $689 = $1,808

LIFO = $657 + ($735 + 1105) - $477 = $2,020

I hope this will help you. If requires clarification, you may comment below.