Question

Inventory information for Part 311 of Sunland Corp. discloses the following information for the month of June.

June   1		Balance		303 units @ $14		June 10		Sold		203 units @ $33
11		Purchased		796 units @ $17		15		Sold		499 units @ $35
20		Purchased		503 units @ $18		27		Sold		303 units @ $37

		(1) LIFO		(2) FIFO
Cost of Goods Sold
Ending Inventory

perodid method

Answer 1

FIFO Method

	Units	Rate	Amount
Sale from beginning inventory	303	$    14	$    4,242
Sale from June 11 purchase	702	$    17	$ 11,934
Cost of goods sold	1,005		$ 16,176

	Units	Rate	Amount
Balance from June 11 purchase	94	$    17	$    1,598
Balance from June 20 purchase	503	$    18	$    9,054
Ending inventory	597		$ 10,652

LIFO Method

	Units	Rate	Amount
Sale from June 20th purchase	503	$    18	$    9,054
Sale from June 11 purchase	502	$    17	$    8,534
Cost of goods sold	1,005		$ 17,588

	Units	Rate	Amount
Balance from Beginning inventory	303	$    14	$    4,242
Balance from June 11 purchase	294	$    17	$    4,998
Ending inventory	597		$    9,240

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