Hanover Lighting had a beginning inventory of 15 units at a cost of $7 per unit
ID: 2498207 • Letter: H
Question
Hanover Lighting had a beginning inventory of 15 units at a cost of $7 per unit on August 1. During the month, the following purchases and sales were made.
Purchases Sales
August 5 20 units at $8 August 2 10 units
August 11 30 units at $9 August 10 15 units
August 23 25 units at $10 August 19 40 units
August 21 15 units
Hanover uses a periodic inventory system.
Instructions: Determine ending inventory and cost of goods sold under:
FIFO
LIFO
1. FIFO:
Ending inventory = $_____________; cost of goods sold = $____________.
2. LIFO:
Ending inventory = $_____________; cost of goods sold = $____________.
Explanation / Answer
1. FIFO:
Ending inventory = $_100____________; cost of goods sold = $____685________.
2. LIFO:
Ending inventory = $__100___________; cost of goods sold = $____685________
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