Fit World had a beginning inventory of 90 crates of vitamins

Fit World had a beginning inventory of 90 crates of vitamins that cost a total of $5,850, During the month, Fit World purchased and sold merchandise on account as follows: Fit World uses a perpetual inventory system. Jan. 2 Purchase 130 crates @S 76 each 140 crates @ $ 100 each 16 Purchase 170 crates $ 86 each 180 crates @$104 each 5 Sale 27 Sale Requirements 1. Determine the Cost of Goods Sold and Ending Inventory using the FIFO inventory costing 2. method, Determine the Cost of Goods Sold and Ending Inventory using the LIFO inventory costing method.

Solution

FIFO Purchases Cost of Goods Sold Inventory on Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 90 65 5850 2 130 76 9880 90 65 5850 130 76 9880 5 90 65 5850 50 76 3800 80 76 6080 16 170 86 14620 80 76 6080 170 86 14620 27 80 76 6080 100 86 8600 70 86 6020 Totals 320 24330 70 86 6020 FIFO 1 COGS 24330 Ending Inventory 6020 LIFO Purchases Cost of Goods Sold Inventory on Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 90 65 5850 2 130 76 9880 90 65 5850 130 76 9880 5 130 76 9880 10 65 650 80 65 5200 16 170 86 14620 80 65 5200 170 86 14620 27 170 86 14620 10 65 650 70 65 4550 Totals 320 25800 70 65 4550 2 COGS 25800 Ending Inventory 4550