Inventory information for Part 311 of Swifty Corp. discloses the following infor

Question

Inventory information for Part 311 of Swifty Corp. discloses the following information for the month of June.

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

June 1 Balance 304 units @ $13 June 10 Sold 205 units @ $30 11 Purchased 804 units @ $15 15 Sold 504 units @ $32 20 Purchased 498 units @ $16 27 Sold 295 units @ $34

Explanation / Answer

FIFO

304 * 13 = 3,952

804 * 15 = 12,060

304 * 13 = 3,952

804 * 15 = 12,060

498 * 16 = 7,968

99 * 13 = 1,287

804 * 15 = 12,060

498 * 16 = 7,968

99 * 13 = 1,287

405 * 15 = 6,075

399 * 15 = 5,985

498 * 16 = 7,968

104 * 15 = 1,560

498 * 16 = 7,968

LIFO

304 * 13 = 3,952

804 * 15 = 12,060

304 * 13 = 3,952

804 * 15 = 12,060

498 * 16 = 7,968

304 * 13 = 3,952

804 * 15 = 12,060

293 * 16 = 4,688

293 * 16 = 4,688

211 * 15 = 3,165

304 * 13 = 3,952

593 * 15 = 8,895

304 * 13 = 3,952

298 * 15 = 4,470

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LIFO

99 * 13 = 1,287

804 * 15 = 12,060

99 * 13 = 1,287

300 * 15 = 4,500

99 * 13 = 1,287

300 * 15 = 4,500

498 * 16 = 7,968

99 * 13 = 1,287

300 * 15 = 4,500

203 * 16 = 3,248

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FIFO

99 * 13 = 1,287

804 * 15 = 12,060

99 * 13 = 1,287

405 * 15 = 6,075

399 * 15 = 5,985

498 * 16 = 7,968

104 * 15 = 1,560

498 * 16 = 7,968

Sales = (205*30) + (504*32) + (295*34) = 6,150 + 16,128 + 10,030 = 32,308

Cost of goods sold = 2,665+ 1,287 + 6,075 + 4,425 = 14,452

  

Date Particulars Units * unit cost Ending inventory June 1 Beginning inventory 304 * 13 = 3,952 304 * 13 = 3,952 June 11 Purchased 804 * 15 = 12,060

304 * 13 = 3,952

804 * 15 = 12,060

June 20 Purchased 498 * 16 = 7,968

304 * 13 = 3,952

804 * 15 = 12,060

498 * 16 = 7,968

June 10 Sold 205 * 13 = 2,665

99 * 13 = 1,287

804 * 15 = 12,060

498 * 16 = 7,968

June 15 Sold

99 * 13 = 1,287

405 * 15 = 6,075

399 * 15 = 5,985

498 * 16 = 7,968

June 27 Sold 295 * 15 = 4,425

104 * 15 = 1,560

498 * 16 = 7,968

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