FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 34 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

Tatum Company has four products in its inventory. Information about December 31, 2018, inventory is as follows:

Assignment:

1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
   
2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of a particular item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 14 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

WayFast Company has just opened a new plant to produce a folding camp cot. Below are the data obtained during the first month of the plant’s operation in April:

Units produced 1,000

Units sold 800

Unit selling price $200

Unit variable selling expense $4

Total fixed selling expense $24,000

Unit direct materials cost $35

Unit direct labour cost $27

Unit variable MOH $6

Total fixed MOH $20,000

How much is the net income under variable costing in April compared with that under absorption costing?

FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 20 units at $40 Sale 15 units at $62 First purchase 37 units at $43 Sale 22 units at $63 Second purchase 13 units at $46 Sale 25 units at $63 The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO?

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 11 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?

b. What is the total cost of the ending inventory according to LIFO?

Below is the variable costing income statement for South Bend Co.

Sales, 6,000 units                                                                        $210,000

Total variable costs:

          Beg. inventory,            680 units              $13,600

          Variable manufacturing cost of

          goods manufactured,       ? units           + 132,000

          Ending inventory,     1,280 units           - (25,600)

          Variable manufacturing cost of goods $120,000

          Variable selling & admin. exp.              + 24,900     ($144,900)

Contribution margin                                                                    $65,100

Total fixed costs:

          Fixed factory overhead                            $19,800

          Fixed selling and admin. expenses       + 15,300       ($35,100)

Operating income                                                                        $30,000

REQUIRED:

1. Prepare an absorption-costing income statement.
2. Reconcile the difference in income.

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of a particular item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 13 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$