Question

Inventory information for Part 311 of Waterway Corp. discloses the following information for the month of June. June 1 Balance 301 units @ $16 June 10 Sold 197 units @ $37 11 Purchased 797 units @ $19 15 Sold 498 units @ $39 20 Purchased 503 units @ $20 27 Sold 297 units @ $42

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
Cost of Goods Sold		$enter a dollar amount		$enter a dollar amount
Ending Inventory		$enter a dollar amount		$enter a dollar amount

Answer 1

2 . FIFO
Date	Particulars	Units	Cost per Unit	Total Cost
June 1	Beginning Inventory	301	$16.0	$4,816
June 11	Purchase	797	$19	$15,143
June 20	Purchase	503	$20.00	$10,060
	Cost of Goods Available for Sale	1601		$30,019
	Less: Ending Inventory (503*20 +106*19)	609		$12,074
	Cost of Goods Sold	992		$17,945
1. LIFO (Periodic)
Date	Particulars	Units	Cost per Unit	Total Cost
June 1	Beginning Inventory	301	$16.0	$4,816
June 11	Purchase	797	$19	$15,143
June 20	Purchase	503	$20.00	$10,060
	Cost of Goods Available for Sale	1601		$30,019
	Less: Ending Inventory (301*16 +308*19)	609		$10,668
	Cost of Goods Sold	992		$19,351