EXERCISE3 Santa Fe Tile Company had the following inventory purchases and sales

Question

EXERCISE3 Santa Fe Tile Company had the following inventory purchases and sales during the month of May. The company uses the periodic inventory method. Compute cost of goods sold and ending inventory using the following inventory costing methods. a) FIFO b) LIFO Purchases Sales Units UnitPrice Total $400 200 5 1,000 Date 5/1/2009 5/5/2009 5/10/2009 5/15/2009 5/20/2009 5/25/2009 5/30/2009 Units Unit Price Total 100 $4 100 $10 $1,000 1006 150 7 600 1,050 200 11 $2,200 1,280 $4,330 8 160 710 300 $3,200

Explanation / Answer

Units available for sale 710 Cost of goods available for sale = $   4,330 Units sold 600 a) FIFO: Cost of goods sold = 100*4+200*5+100*6+150*7+50*8 = $   3,450 Ending inventory = 110*8 = $       880 b) LIFO: Cost of goods sold = 160*8+150*7+100*6+190*5 = $   3,880 Ending inventory =100*4+10*5 = $       450

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.