Exercise 8-10 Intermediate Accounting- Kieso (16th ed.) Please be specific and s

Question

Exercise 8-10 Intermediate Accounting- Kieso (16th ed.)

Please be specific and show steps of how to solve, because it makes it easier for me to learn and understand.

Exercise 8-10 Inventory information for Part 311 of Ayayai Corp. discloses the following information for the month of June. June 1 Balance 302 units $15 June 10 Sold 200 units$35 796 units @ $18 501 units @ $19 Purchased 15 Sold 499 units $37 27 Sold 301 units@$40 11 20 Purchased Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. LIFO FIFO Cost of Goods Sold Ending Inventorys 9966 LINK TO TEXT 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? The ending inventory at LIFO LINK TO TEXT

Explanation / Answer

Total units sold = 200+499+301= 1000 Ending inventory units=(302+796+501)-1000= 599 1 LIFO: Cost of goods sold 18501 =(501*19)+(499*18) Ending inventory 9876 =(302*15)+(297*18) 2 FIFO: Cost of goods sold 17094 =(302*15)+(698*18) Ending inventory 11283 =(98*18)+(501*19) 3 Ending inventory LIFO = (302-200)*15+(796-499)*18+(501-301)*19= $10676 4 Total sales=(200*35)+(499*37)+(301*40)= $37503 Gross Profit(FIFO) = 37503-17094= $20409

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