Oahu Kiki tracks the number of units purchased and sold throughout each accounti

Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 270 units between January 16 and 23. Date Units Unit Cost Total Cost Beginning Inventory January 1140 S 75 $10,500 25,500 25,200 January 15 300 85 January 24 240 105 Purchase Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. FIFO LIFO Cost of Ending Inventory Cost of Goods Sold

Explanation / Answer

(a) FIFO

(b) LIFO

Therefore:

FIFO Date PURCHASE SALES ENDING INVENTORY Units Price ($) Value ($) Units Price ($) Value ($) Units Price ($) Value ($) Jan 1: Beginning Inventory 140 75 10500 140 75 10500 Jan 15: Purchase 300 85 25500 140 75 10500 300 85 25500 Jan 16-Jan 23: Sales 140 75 10500 130 85 11050 170 85 14450 Jan 24: Purchase 240 105 25200 170 85 14450 240 105 25200 270 21550 410 39650

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