Question

Please do it by type not pics.

Date              Event	Number of Units	Price/Unit
1-Jan Beg. Inv	3,000	4.50
5-Jan Purchased	5,000	3.00
14-Jan Sold	4,000	4.00
27-Jan Purchased	6,000	2.00
29-Jan Sold	2,500	3.50

1.Purple Cow Inc. uses the perpetual last-in-first-out method to account for their inventory. Using the following information calculate the ending inventory.

2.Purple Cow Inc. uses the periodic last-in-first-out method to account for their inventory. Using the following information calculate the ending inventory.

Answer 1

1

Under the perpetual last-in-first-out method , Cost of goods sold of 4000 units on 14-Jan is from 5-Jan Purchases and 2500 units 29-Jan sales is from 27-Jan Purchases

Ending inventory = (3000*4.5)+(5000-4000)*3+(6000-2500)*2= $23500

2

Under the periodic last-in-first-out method , Cost of goods sold of 6500 (4000+2500) units is from 6000 units of 27-Jan Purchases and 500 units from 5-Jan Purchases

Ending inventory = (3000*4.5)+(5000-500)*3= $27000