Exercise 810 Inventory information for Part 311 of Carla Cor

Exercise 8-10 Inventory information for Part 311 of Carla Corp. discloses the following information for the month of June June 1 Balace 30 units$15 June 10 Sold 200 units$35 11 Purchased 796 units$18 20 Purchased 501 units $19 15 Sold 499 units @ $37 27 Sold 301 units@$40 Your answer is incorrect. Try again. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO LIFO FIFO Cost of Goods Sold 11283 9876 Ending Inventory 18501 18501

Solution

?1)CALCUTION OFc.o.g.s,endending inventory cost under periodic inventoy system?date

?FIFO    LIFO

?1)COST OF GOOS SOLD 1) C.O.G.S

302@15=4530    501@19+499@18=18501

?(1000-302)=698@18=12564   

? TOTAL=17094

2)ENDING INVENTORY 2) ENDING INVENTORY

?796-698=98@18=1764    (796-499)@18+302@15=9876

?    501@19=9519

?TOTAL    =11283

2ANS

?VAUE OF ENDING INVENTORY UNDER PERPETUAL INVENTORY SYSTEM (LIFO)

102@15

796@18

102@15

796@18

102@15

297@18

102@15

297@18

102@15

297@18

501@19

102@15

297@18

501@19

102@15=1530

297@18=5346

200@19=3800

? ENDING INVENTORY COST (LIFO)=10676

3)ANS

?CALCULATION OF GROSS PROFIT UNDER PERPETUAL IN VENTORY FIFO

?    GROSS PROFIT =SALES -C.O.G,S

? SALES=200@35+499@37+301@40

   =37503

? (-) c.O.G.S=17094

? gross profit(FIFO)=20409

(Already calculated above in periodical inventory method same in perpetual also)

Date	purchases	sales
jun 1st	302@15$
jun 10th		200@35$
jun11 th	796@18$
jun15 th		499@37$
jun20 th	501@19$
jun27 th		301@40$
total units	1599	1000