Inventory 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?

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