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Based on the information below what would the ending inventory and the cost of goods sold...

Based on the information below what would the ending inventory and the cost of goods sold be for Gargleblaster Inc (GI) under the following cost flow assumptions?

                                                                          Ending Inventory                  Cost of Goods Sold

         1.         LIFO (periodic inventory method)    $                                                                  $                                                   

2.         FIFO (periodic inventory method) $ $                                                   

3.         LIFO (perpetual inventory method) $ $                                                   

4.         FIFO (perpetual inventory method) $ $                                                                                                         

                                                          Quantity   Cost per Unit                Total

            Beginning Inventory               200 units         $10                              2,000

            January Purchases                   300 units         $12                              3,600

            March Purchases                     500 units         $15                              7,500

            August Purchases                   500 units         $15                              7,500

            December Purchases               200 units         $20                              4,000

                                                            1,700 units                                          24,600

There were 1,200 units sold during the year, half in May, and the others in September. No units were lost, stolen, or spoiled.

Solutions

Expert Solution

Answer-

Month Purchase Sold
Opening Inventory 200 units*$10=$2000
January 300 units*$12=$3600
March 500 Units*$15=$7500
May 600 units
Augest 500 units*$15=$7500
Setember 600 units
December 200 units*$20=$4000
Total 1700 units 1200 units

Prepetual FIFO Method

cost of Goods sold

Month Sold Units Cost
May 600 Units

200units*$10=2000

300Units*$12=3600

100 Units*$15=1500
Setember 600 Units

400 Unist *$15=6000

200 Units*$15=3000
Total 1200Units $16100

Ending Inventory
month Units cost
Decenber 500

300 Units*15=$4500

200 Units*15=$3000
Total 500 Units $7500

2) As per LIFO method

Cost of goods sold
Month of purchase and sale Sold Units cost
May 600 units

500 unist*$15=7500

100unist*$12=1200
Augest 600 Units

500units*$15=7500

100units*$12=1200

Total

 1200 units $17400
Cost of Ending inventory
Month Units Cost
DEcember 500

200 Units*$20=4000

100 units*$12=1200

200 units*$10=2000
Total 500 $7200

ekkarill92 answered 1 year ago
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