Question

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

June 1		Balance	25 units at $60
6		Sale	20 units
8		Purchase	20 units at $61
16		Sale	10 units
20		Purchase	20 units at $62
23		Sale	25 units
30		Purchase	15 units at $63

Calculate the cost of the ending inventory at June 30, using (a) the first-in, first-out (FIFO) method and (b) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

(a) First-In, First-Out (FIFO):

	units at	$	$
	units at	$
Total			$

(b) Last-In, First-Out (LIFO):

	units at	$	$
	units at	$
	units at	$
Total			$

Answer 1

FIFO
Date	Purchases			Cost of Goods Sold			Ending Inventory
	Qty	Per Unit	Total	Qty	Per Unit	Total	Qty	Per Unit	Total
Jun-01							25	60	1500
Jun-06				20	60	1200	5	60	300
Jun-08	20	61	1220				5	60	300
							20	61	1220
Jun-16				5	60	300	15	61	915
				5	61	305
Jun-20	20	62	1240				15	61	915
							20	62	1240
Jun-23				15	61	915	10	62	620
				10	62	620
Jun-30	15	63	945				10	62	620
							15	63	945
Total							25		1565

FIFO
Units at	$	$
10	62	620
15	63	945
25		1565

LIFO
Date	Purchases			Cost of Goods Sold			Ending Inventory
	Qty	Per Unit	Total	Qty	Per Unit	Total	Qty	Per Unit	Total
Jun-01							25	60	1500
Jun-06				20	60	1200	5	60	300
Jun-08	20	61	1220				5	60	300
							20	61	1220
Jun-16				10	61	610	5	60	300
							10	61	610
Jun-20	20	62	1240				5	60	300
							10	61	610
							20	62	1240
Jun-23				20	62	1240	5	60	300
				5	61	305	5	61	305
Jun-30	15	63	945				5	60	300
							5	61	305
							15	63	945
Total							25		1550

LIFO
Units at	$	$
5	60	300
5	61	305
15	63	945
25		1550