35 654.85 90 $1,538.90 Compute the ending inventory at May 31 and cost of goods

Question

35

654.85

90

$1,538.90

  Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.  (Round answers to 2 decimal places, e.g. 10.50.)

Date Explanation Units Unit Cost Total Cost May 1 Inventory 30   $14.71 $441.30 May 15 Purchases 25    17.71   442.75 May 24 Purchases

35

   18.71

654.85

        Totals

90

$1,538.90

Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

Explanation / Answer

Hi,

Please find the answer as follows:

Ending Inventory:

FIFO = (90 - 65)*18.71 = 467.75

LIFO = (90 - 65)*14.71 = 367.75

Cost of Goods Sold:

FIFO = 30*14.71 + 25*17.71 + 10*18.71 = 1071.15

LIFO = 35*18.71 + 25*17.71 + 5*14.71 = 1171.15

Thanks.

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