Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Ite

Question

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item ER27 are as follows:

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on May 28 and (b) the inventory on May 31.

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item ER27 are as follows:

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31.

eriodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods

The units of an item available for sale during the year were as follows:

There are 14 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method.

May 1 Inventory 41 units @ $22 9 Sale 30 units 13 Purchase 27 units @ $24 28 Sale 16 units

Explanation / Answer

a) Cost of merchandise sold on may 28 = (11*22+5*24) = 362

Ending inventory = 22*24 = 528

b) Cost of merchandise sold = 92*31 = 2852

Ending inventory = (17*31+20*28) = 1087

c) Ending inventory :

FIFO = 14*6480 = 90720

LIFO = 12*5400+2*6000 = 76800

Weighted average cost = (270000/45*14) = 84000

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