Question

# ABC Company had the following purchases and sales in June. What is the ending June inventory...

1. ABC Company had the following purchases and sales in June. What is the ending June inventory balance using the periodic FIFO and perpetual LIFO methods?

Date                   Action                      Units          Cost

June 1             Beg. Inventory           100               \$2

June 6             Sale                                50

June 9             Purchase                      200              \$4

June 15           Sale                               175

June 20           Purchase                      100              \$5

June 25           Sale                               125

1. ABC Company had the following purchases and sales in June. What is the ending June inventory balance using the periodic FIFO and perpetual LIFO methods?

Date                   Action                      Units          Cost

June 1             Beg. Inventory           100               \$2

June 6             Sale                                50

June 9             Purchase                      200              \$4

June 15           Sale                               175

June 20           Purchase                      100              \$5

June 25           Sale                               125

1. ABC Company had the following purchases and sales in June. What is the ending June inventory balance using the periodic FIFO and perpetual LIFO methods?

Date                   Action                      Units          Cost

June 1             Beg. Inventory           100               \$2

June 6             Sale                                50

June 9             Purchase                      200              \$4

June 15           Sale                               175

June 20           Purchase                      100              \$5

June 25           Sale                               125

Periodic inventory

 FIFO LIFO Cost of Ending Inventory \$       250 \$          100

Working:

 Cost of Goods Available for sale Units Cost per unit value Beginning Inventory 100 \$         2.00 \$                  200 Purchases 200 \$         4.00 \$                  800 Purchases 100 \$         5.00 \$                  500 Total 400 \$              1,500
 FIFO A Total Units Available for sale 400 \$                1,500 Units Sold 350 Ending Inventory Units 50 Valuation Cost of Goods Sold 100 \$                2.00 \$                    200 200 \$                4.00 \$                    800 50 \$                5.00 \$                    250 B Total Cost of Goods Sold 350 units \$                1,250 A-B Ending Inventory 50 units \$                    250
 LIFO A Total Units Available for sale 400 \$                1,500 Units Sold 350 Ending Inventory Units 50 Valuation Cost of Goods Sold 100 \$                5.00 \$                    500 200 \$                4.00 \$                    800 50 \$                2.00 \$                    100 B Total Cost of Goods Sold 350 units \$                1,400 A-B Ending Inventory 50 units \$                    100

Perpetual:

 FIFO LIFO Cost of Ending Inventory \$       250 \$          100

Note: FIFO ending inventory remains same in periodic and perpetual inventory system.

LIFO

A

Total Units Available for sale

400

\$                1,500

Units Sold

350

Ending Inventory Units

50

Valuation

From:

Cost of Goods Sold

June-1

50

\$                2.00

\$                    100

June 9

175

\$                4.00

\$                    700

June 20

100

\$                5.00

\$                    500

June 9

25

\$                4.00

\$                    100

B

Total Cost of Goods Sold

350

units

\$                1,400

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