Question

Inventory information for Part 311 of Metlock Corp. discloses the following information for the month of June. June 1 Balance 297 units @ $14 June 10 Sold 204 units @ $35 11 Purchased 803 units @ $17 15 Sold 497 units @ $36 20 Purchased 505 units @ $19 27 Sold 296 units @ $39

(a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) LIFO (2) FIFO Cost of Goods Sold $ $ Ending Inventory $ $

Answer 1

FIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending inventory
June, 01	Beginning Balance	297	$             14.00	$4,158	297	$         14.00	$4,158
June, 11	Purchases	803	$             17.00	$13,651	700	$         17.00	$11,900	103	$         17.00	$1,751
June, 20	Purchases	505	$             19.00	$9,595				505	$         19.00	$9,595
	Total Goods Available For sale	1,605		$27,404	997		$16,058	608		$11,346
	Total Units sold = 204+497+296 =	997
LIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending inventory
June, 01	Beginning Balance	297	$             14.00	$4,158				297	$         14.00	$4,158
June, 11	Purchases	803	$             17.00	$13,651	492	$         17.00	$8,364	311	$         17.00	$5,287
June, 20	Purchases	505	$             19.00	$9,595	505	$         19.00	$9,595
	Total Goods Available For sale	1,605		$27,404	997		$17,959	608		$9,445
Answer =
		FIFO	LIFO
	Cost of Goods Sold	$16,058	$17,959
	Ending inventory	$11,346	$9,445