Inventory information for Part 311 of Monique Aaron Corp. discloses the followin
ID: 2454658 • 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.
(1)
LIFO
(2)
FIFO
B.) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?
June 1 Balance 296 units @ $12 June 10 Sold 198 units @ $28 11 Purchased 795 units @ $14 15 Sold 495 units @ $29 20 Purchased 498 units @ $15 27 Sold 303 units @ $31Explanation / Answer
(a) ending inventory = 1589 -996 sold = 593 units
LIFO
Ending inventoty(296*12 + 297*14) = $7,710
COGS = (498*14 + 498*15) = $14,442
B) FIFO
Ending (498*15 + 95 *14) = $8,800
COGS= (700 *14 + 296 *12) = $13,352
B) Perpetual inventory
96 @12 = $1176
795*14 = 11,130
98 *12 = 1176
300*14 = $4200
98*12 = 1176
300*14 = 4200
498*15 = 7470
98 *12 = 1176
300*14 = 4200
195*15 = 2925
FIFO
98 *12 = 1176
795*14 = 11,130
98 *12 = 1176
397 *14 = 5558
398*14 = 5572
498*15 = 7470
95*14 = 1330
498*15 = 7470
sold Balance Beginning 296*12 @96*12 = 1176 june 10 ( 795 *14 = $11,130) -96 @12 = $1176
795*14 = 11,130
june 15 sold 495 *14 = 693098 *12 = 1176
300*14 = $4200
june 20 498 *15 = $7470 -98*12 = 1176
300*14 = 4200
498*15 = 7470
june 27 303@15 = 454598 *12 = 1176
300*14 = 4200
195*15 = 2925
total COGS= $13,851 Ending = $8301Related Questions
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