Question

During its first year of operations, Maine Corporation made the following inventory purchases and sales.

Date	Units Purchased/(Sold)	Cost Per Unit	Inventory Balance (in units)
April 3	5,000	$4.25	5,000
April 10	2,000	$4.00	7,000
April 16	(4,000)		3,000
April 20	5,000	$4.50	8,000
April 25	2,000	$4.75	10,000

Calculate ending inventory and cost of goods sold using the 1) FIFO method under a periodic inventory system 2) FIFO method under a perpetual inventory system 3) LIFO method under a periodic inventory system and 4) LIFO method under a perpetual inventory system.

Answer 1

Ans.1	FIFO Periodic Inventory Method:
	*Ending Inventory		44250
	*Cost of goods sold		17000
	*Calculation:
	Ending inventory units = 10000 (given)
	Date	Units	Rate	Amount
	25-Apr	2000	4.75	9500
	20-Apr	5000	4.5	22500
	10-Apr	2000	4	8000
	3-Apr	1000	4.25	4250
	Total	10000		44250
	Sold Units = 4000
	Date	Units	Rate	Amount
	3-Apr	4000	4.25	17000
Ans.2	FIFO Perpetual Inventory Method:
		Purchase			Sales			Balance
	Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
	3-Apr	5000	4.25	21250				5000	4.25	21250
	10-Apr	2000	4	8000				5000	4.25	21250
								2000	4	8000
	16-Apr				4000	4.25	17000	1000	4.25	4250
								2000	4	8000
	20-Apr	5000	4.5	22500				1000	4.25	4250
								2000	4	8000
								5000	4.5	22500
	25-Apr	2000	4.75	9500				1000	4.25	4250
								2000	4	8000
								5000	4.5	22500
								2000	4.75	9500
	Total						17000			44250
	*Ending Inventory		44250
	*Cost of goods sold		17000
Ans.3	LIFO Periodic Inventory Method:
	*Ending Inventory		42750
	*Cost of goods sold		18500
	*Calculation:
	Ending inventory units = 10000 (given)
	Date	Units	Rate	Amount
	3-Apr	5000	4.25	21250
	10-Apr	2000	4	8000
	20-Apr	3000	4.5	13500
	Total	10000		42750
	Sold Units = 4000
	Date	Units	Rate	Amount
	25-Apr	2000	4.75	9500
	20-Apr	2000	4.5	9000
	Total	4000		18500
	FIFO Perpetual Inventory Method:
		Purchase			Sales			Balance
	Date	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
	3-Apr	5000	4.25	21250				5000	4.25	21250
	10-Apr	2000	4	8000				5000	4.25	21250
								2000	4	8000
	16-Apr				2000	4	8000
					2000	4.25	8500	3000	4.25	12750
	20-Apr	5000	4.5	22500				3000	4.25	12750
								5000	4.5	22500
	25-Apr	2000	4.75	9500				3000	4.25	12750
								5000	4.5	22500
								2000	4.75	9500
	Total						16500			44750
	*Ending Inventory		44750
	*Cost of goods sold		16500