Question

inventory information for Part 311 of Oriole Corp. discloses the following information for the month of June. June 1 Balance 299 units @ $16 June 10 Sold 196 units @ $38 11 Purchased 803 units @ $19 15 Sold 502 units @ $40 20 Purchased 505 units @ $21 27 Sold 297 units @ $43 (Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Answer 1

Answer :

-	FIFO	LIFO
Cost of goods sold	$18,008	$19,915
Cost of endidng inventory	$12,638	$10,731

Working Note :

Cost of Goods Available for sale

-	Units	Cost per unit	Value
Beginning inventory	299	$16.00	$4,784
Purchases	803	$19.00	$15,257
Purchases	505	$21.00	$10,605
Total	1607	-	$30,646

FIFO

A	Total units available for sale	-	1607	-	$30,646
	Units sold	-	995	-	-
	Ending inventory units	-	612	-	-
	Valuation	-	-	-	-
	Cost of goods sold	299		$16.00	$4,784
	-	696	-	$19.00	$13,224
B	Cost of goods sold	955	units	-	$18,008
A - B	Ending inventory	612	units	-	$12,638

LIFO

A	Total units available for sale	-	1607	-	$30,646
	Units sold	-	995	-	-
	Ending inventory units	-	612	-	-
	Valuation	-	-	-	-
	Cost of goods sold	505	-	$21.00	10,605
	-	490	-	$19.00	9,310
B	Cost of goods sold	995	units	-	$19,915
A - B	Ending inventory	612	units	-	$10,731

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