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urel Corporation\'s records showed the following transactions, in order of seque

ID: 2555564 • Letter: U

Question

urel Corporation's records showed the following transactions, in order of sequence, for an inventory item that it sells. LAUREL CORPORATION INVENTORY TRANSACTIONS FOR SINGLE INVENTORY ITEM Transaction Number Units Unit Cost 5.00 5.50 Description Beginning Inventory Purchase Sale Purchase Sale Purchase 400 S 600 700 900 800 200 5.70 5.80 REQUIRED: Compute the ending inventory amount and the cost of goods sold amount, using the above data, for each of the following inventory cost flow assumptions. (1) LIFO perpetual. (2) FIFO periodic. (3) Weighted average perpetual (moving average).

Explanation / Answer

1.LIFO METHOD INVENTORY SCHEDULE

No

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Total cost

Inv.Qty

Unit Cost

Total cost

1

400

5

2000

2

600

5.50

3300

400

5

2000

600

5.50

3300

3

600

5.50

3300

300

5

1500

100

5

500

4

900

5.70

5130

300

5

1500

900

5.70

5130

5

800

5.70

4560

300

5

1500

100

5.7

570

6

200

5.8

1160

300

5

1500

100

5.7

570

200

5.8

1160

TOTAL

8360

3230

Cost of goods sold                  =        $ 8360

Ending Inventory                    =       $ 3230

2.FIFO METHOD INVENTORY SCHEDULE

No

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Total cost

Inv.Qty

Unit Cost

Total cost

1

400

5

2000

2

600

5.50

3300

400

5

2000

600

5.50

3300

3

400

5

2000

300

5.5

1650

300

5.5

1650

4

900

5.70

5130

300

5.5

1650

900

5.70

5130

5

300

5.5

1650

400

5.7

2280

500

5.7

2850

6

200

5.8

1160

400

5.7

2280

200

5.8

1160

TOTAL

8150

3440

Cost of goods sold                  =        $ 8150

Ending Inventory                    =       $ 3440

3.WEIGHTED AVERAGE INVENTORY SCHEDULE

No

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Total cost

Inv.Qty

Unit Cost

Total cost

1

400

5

2000

2

600

5.50

3300

400

5

2000

600

5.50

3300

3

700

5.3

3710

300

5.3

1590

4

900

5.70

5130

300

5.3

1590

900

5.70

5130

5

800

5.6

4480

400

5.6

2240

6

200

5.8

1160

400

5.6

2240

200

5.8

1160

TOTAL

8190

3400

Cost of goods sold                  =        $ 8190

Ending Inventory                    =       $ 3400

No

Qty Purchased

Unit Cost

Total Cost

Qty Sold

Unit cost

Total cost

Inv.Qty

Unit Cost

Total cost

1

400

5

2000

2

600

5.50

3300

400

5

2000

600

5.50

3300

3

600

5.50

3300

300

5

1500

100

5

500

4

900

5.70

5130

300

5

1500

900

5.70

5130

5

800

5.70

4560

300

5

1500

100

5.7

570

6

200

5.8

1160

300

5

1500

100

5.7

570

200

5.8

1160

TOTAL

8360

3230