The Rock Shop shows the following data related to an item of inventory: Inventor

ID: 2564064 • Letter: T

Question

The Rock Shop shows the following data related to an item of inventory:

Inventory, January 31

What value should be assigned to the ending inventory using FIFO?

Value assigned to the ending inventory

What value should be assigned to cost of goods sold using LIFO?

300 units

Inventory, January 1 300 units @ $5.00 Purchase, January 9 900 units @ $5.40 Purchase, January 19 210 units @ $6.00

Inventory, January 31

What value should be assigned to the ending inventory using FIFO?

Value assigned to the ending inventory

What value should be assigned to cost of goods sold using LIFO?

Value assigned to the cost of goods sold

300 units

Under FIFO method old goods are sold first and ending inventory would be new one.

Ending Inventory

Cost of Goods sold

Under LIFO method new goods are sold first and ending inventory would be oldest one.

Ending Inventory

Cost of Goods SOld

Particulars Working Amt Purchase, January 19 210 x 6 1260 Purchase, January 9 90 x 5.40 486 Ending Inventory 1746

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