The following is a record of Pervis Ellison Company’s transactions for Boston Te
ID: 2471511 • Letter: T
Question
The following is a record of Pervis Ellison Company’s transactions for Boston Teapots for the month of May 2014. May 1 Balance 580 units @ $21 May 10 Sale 435 units @ $36 12 Purchase 869 units @ $24 20 Sale 782 units @ $36 28 Purchase 580 units @ $29 Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 812 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO? (1) FIFO (2) LIFO Ending Inventory $ $ Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO. (1) FIFO (2) LIFO Ending Inventory $ $
Explanation / Answer
Units Price 1-May Balance 580 $21 10-May Sale 435 $36 12-May Purchase 869 $24.00 20-May Sale 782 $36.00 28-May Purchase 580 $29 1 FIFO Periodic Units Available for Sale 580+869+580= 2029 Units Sold 1217 Units in ending Inventory 812 Cost of Goods Sold Units Unit Cost Total Sales From May 1 Balance 580 $21 $12,180 Sales from May 12 Purchase 637 $36 $22,932 1217 $57 $35,112 Ending Inventory Units Unit Cost Total Inventory from May 12 Purchase 232 $36 $8,352 Inventory From May 28 Purchase 580 $29 $16,820 812 65 25172 2 LIFO Periodic Units Available for Sale 580+869+580= 2029 Units Sold 1217 Units in ending Inventory 812 Cost of Goods Sold Units Unit Cost Total Sales From May 28 Balance 580 $29 $16,820 Sales from May 12 Purchase 637 $24 $15,288 1217 $53 $32,108 Ending Inventory Units Unit Cost Total Inventory from May 12 Purchase 232 $24 $5,568 Inventory From May 1 Balance 580 $21 $12,180 812 45 17748 FIFO Perpetual Date Purchases Sales Balance Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total 1-May 580 $21 $12,180 10-May 435 $21 $9,135 145 $21 $3,045 12-May 869 $24.00 $20,856 145 $21 $3,045 869 $24.00 $20,856 20-May 145 $21 $3,045 637 $24 $15,288 232 $24.00 $5,568 28-May 580 $29 $16,820 232 $24 $5,568 580 $29 $16,820 LIFO Perpetual Date Purchases Sales Balance Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total 1-May 580 $21 $12,180 10-May 435 $21 $9,135 145 $21 $3,045 12-May 869 $24.00 $20,856 145 $21 $3,045 869 $24.00 $20,856 20-May 782 $24 $18,768 145 $21 $3,045 87 $24 $2,088 28-May 580 $29 $16,820 145 $21 $3,045 87 $24 $2,088 580 $29 $16,820
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