The following data regarding purchases and sales of a commodity were taken from

Question

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

Calculate the cost of the ending inventory at June 30, using (a) the first-in, first-out (FIFO) method and (b) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

(a) First-In, First-Out (FIFO):

(b) Last-In, First-Out (LIFO):

June 1 Balance 25 units at $60 6 Sale 20 units 8 Purchase 20 units at $61 16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 units 30 Purchase 15 units at $63

Explanation / Answer

FIFO Date Purchases Cost of Goods Sold Ending Inventory Qty Per Unit Total Qty Per Unit Total Qty Per Unit Total Jun-01 25 60 1500 Jun-06 20 60 1200 5 60 300 Jun-08 20 61 1220 5 60 300 20 61 1220 Jun-16 5 60 300 15 61 915 5 61 305 Jun-20 20 62 1240 15 61 915 20 62 1240 Jun-23 15 61 915 10 62 620 10 62 620 Jun-30 15 63 945 10 62 620 15 63 945 Total 25 1565 FIFO Units at $ $ 10 62 620 15 63 945 25 1565 LIFO Date Purchases Cost of Goods Sold Ending Inventory Qty Per Unit Total Qty Per Unit Total Qty Per Unit Total Jun-01 25 60 1500 Jun-06 20 60 1200 5 60 300 Jun-08 20 61 1220 5 60 300 20 61 1220 Jun-16 10 61 610 5 60 300 10 61 610 Jun-20 20 62 1240 5 60 300 10 61 610 20 62 1240 Jun-23 20 62 1240 5 60 300 5 61 305 5 61 305 Jun-30 15 63 945 5 60 300 5 61 305 15 63 945 Total 25 1550 LIFO Units at $ $ 5 60 300 5 61 305 15 63 945 25 1550

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.