Homework SourseInventory information for Part 311 of Monique Aaron Corp dis
Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June.
A.) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
(1)
LIFO
(2)
FIFO
B.) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?
| June 1 | Balance | 296 units @ $12 | June 10 | Sold | 198 units @ $28 | |||||
| 11 | Purchased | 795 units @ $14 | 15 | Sold | 495 units @ $29 | |||||
| 20 | Purchased | 498 units @ $15 | 27 | Sold | 303 units @ $31 |
Solution
(a) ending inventory = 1589 -996 sold = 593 units
LIFO
Ending inventoty(296*12 + 297*14) = $7,710
COGS = (498*14 + 498*15) = $14,442
B) FIFO
Ending (498*15 + 95 *14) = $8,800
COGS= (700 *14 + 296 *12) = $13,352
B) Perpetual inventory
96 @12 = $1176
795*14 = 11,130
98 *12 = 1176
300*14 = $4200
98*12 = 1176
300*14 = 4200
498*15 = 7470
98 *12 = 1176
300*14 = 4200
195*15 = 2925
FIFO
98 *12 = 1176
795*14 = 11,130
98 *12 = 1176
397 *14 = 5558
398*14 = 5572
498*15 = 7470
95*14 = 1330
498*15 = 7470
| sold | Balance | |
| Beginning 296*12 | @96*12 = 1176 | |
| june 10 ( 795 *14 = $11,130) | - | 96 @12 = $1176 795*14 = 11,130 |
| june 15 sold | 495 *14 = 6930 | 98 *12 = 1176 300*14 = $4200 |
| june 20 498 *15 = $7470 | - | 98*12 = 1176 300*14 = 4200 498*15 = 7470 |
| june 27 | 303@15 = 4545 | 98 *12 = 1176 300*14 = 4200 195*15 = 2925 |
| total | COGS= $13,851 | Ending = $8301 |
