Exercise 8-13 (Part Level Submission) Inventory information for Part 311 of Moni

Question

Exercise 8-13 (Part Level Submission) Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June. June 1 Balance 299 units @ $12 June 10 Sold 201 units @ $28 11 Purchased 802 units @ $14 15 Sold 503 units @ $29 20 Purchased 504 units @ $15 27 Sold 301 units @ $31 Collapse question part (a) Incorrect answer. Your answer is incorrect. Try again. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Explanation / Answer

The ending inventory consists of 600 units.

Total units sold = 201 + 503 + 301 = 1,005

LIFO:

Cost of goods sold = Beginning inventory + Purchases - Ending inventory = 299 x $ 12 + $ 18,788 - $ 8,204 = $ 14,172

Ending inventory = 98 x $12 + 502 x $ 14 = $ 8,204

FIFO:

Cost of goods sold = Beginning inventory + Purchases - Ending Inventory = $ 3,588 + $ 18,788 - $ 8,904 = $ 13,472

Ending inventory = 504 x $ 15 + 96 x $ 14 = $ 8,904

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