Inventory information for Part 311 of Monique Aaron Corp. discloses the followin
ID: 2446740 • Letter: I
Question
Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June.
(A) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
Cost of Goods Sold:
LIFO:
FIFO:
Ending Inventory:
LIFO:
FIFO:
June 1 Balance 299 units @ $14 June 10 Sold 203 units @ $34 June 11 Purchased 801 units @ $17 June 15 Sold 495 units @ $35 June 20 Purchased 496 units @ $18 June 27 Sold 296 units @ $38Explanation / Answer
1. Computation of LIFO
Receipts Issues Balances
96
801
14
17
1344
13617
96
306
14
17
1344
5202
96
306
496
14
17
18
1344
5202
8928
96
306
200
14
17
18
1344
5202
3600
Cost of goods sold = 203 units @ 34 = 6902
495 units @35 = 17325
296 units @ 38 = 11248
Ending inventory = 96 units @ 14 = 1344
306 units @ 17 = 5202
200 units @ 18 = 3600
2. Computation of FIFO
Receipts Issues Balances
96
801
14
17
1344
13617
402
496
17
18
6834
8928
106
496
17
18
1802
8928
Cost of goods sold 203 units @34 = 6902
495 units @ 35 = 17325
296 units @ 38 = 11248
Ending inventory 106 units @ 17 =1802
496 units @ 18 = 8928.
Date Unit Rate Amount Unit Rate Amount Unit Rate Amount Jun 1 - - - 299 14 4186 Jun 10 - - - 203 34 6902 96 14 1344 Jun 11 801 17 13617 - - -96
801
14
17
1344
13617
Jun 15 - - - 495 35 1732596
306
14
17
1344
5202
Jun 20 496 18 8928 - - -96
306
496
14
17
18
1344
5202
8928
Jun 27 - - - 296 38 1124896
306
200
14
17
18
1344
5202
3600
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