Based on the information below what would the ending inventory and the cost of g
ID: 2511111 • Letter: B
Question
Based on the information below what would the ending inventory and the cost of goods sold be for Gargleblaster Inc (GI) under the following cost flow assumptions?
Ending Inventory Cost of Goods Sold
1. LIFO (periodic inventory method) $ $
2. FIFO (periodic inventory method) $ $
3. LIFO (perpetual inventory method) $ $
4. FIFO (perpetual inventory method) $ $
Quantity Cost per Unit Total
Beginning Inventory 200 units $10 2,000
January Purchases 300 units $12 3,600
March Purchases 500 units $15 7,500
August Purchases 500 units $15 7,500
December Purchases 200 units $20 4,000
1,700 units 24,600
There were 1,200 units sold during the year, half in May, and the others in September. No units were lost, stolen, or spoiled.
Explanation / Answer
Answer-
Prepetual FIFO Method
cost of Goods sold
200units*$10=2000
300Units*$12=3600
100 Units*$15=1500
400 Unist *$15=6000
200 Units*$15=3000
Ending Inventory
300 Units*15=$4500
200 Units*15=$3000
2) As per LIFO method
500 unist*$15=7500
100unist*$12=1200
500units*$15=7500
100units*$12=1200
Total
200 Units*$20=4000
100 units*$12=1200
200 units*$10=2000
Month Purchase Sold Opening Inventory 200 units*$10=$2000 January 300 units*$12=$3600 March 500 Units*$15=$7500 May 600 units Augest 500 units*$15=$7500 Setember 600 units December 200 units*$20=$4000 Total 1700 units 1200 unitsRelated Questions
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