QS 6-5 Perpetual: Inventory costing with LIFO LO P1A company reports the following beginning inventory and two purchases for the month of January. On Januery 26, the company sells310 units. Ending inventory at January 31 totals 130 units.Beginning inventory on January 1Purchane on JanuaryPurchase on January 25Units28060Unit Cost$2.602.801002.94Required:Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based onLIFO.Perpetual LIFO:Goods purchasedCost of Goods SoldInventery Balance#ofunitsCost perunitofunitssoldCost per Cost of GoodsunitDateof unitsCost perunitInventoryBalanceSoldJanuary 1JanuaryJanuary 25

LIFO Last-in First Out: Under LIFO inventory accounting, units purchased last are sold first.

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 310 units. Ending inventory at January 31 totals 130 units. Units 280 60 100 Unit Cost Beginning inventory on January1 Purchase on January Purchase on January 25 $2.60 2.80 2.94 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventery Balance of of units Cost per unit Cost per Cost of Goods Sold Date units sold Cost per Inventory Balance of units unit unit January 1 January January 25

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 310 units. Ending inventory at January 31 totals 130 units. Units 280 60 100 Unit Cost Beginning inventory on January1 Purchase on January Purchase on January 25 $2.60 2.80 2.94 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventery Balance of of units Cost per unit Cost per Cost of Goods Sold Date units sold Cost per Inventory Balance of units unit unit January 1 January January 25

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...

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LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-IB. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
FIFO and UFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 7,200 units at 160 Sale 4,800 units at 300 First purchase 16,000 units at 168 Sale 12,000 units at 300 Second purchase 15,000 units at176 Sale 11,000 units at 300 The firm uses the perpetual inventory system, and there are 10,400 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (A) FIFO and (B) UFO?
Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at 360 7,200 Aug. 13 Purchase 260 units at 342 88,920 Nov. 30 Purchase 40 units at 357 14,280 Available for sale 320 units 110,400 There are 57 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (A) first-in, first-out (FIFO) method; (B) last-in, first-out (LIFO) method; and (C) weighted average cost method.
Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 175 units at 30 7 Sale 155 units 15 Purchase 200 units at 33 24 Sale 140 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (A) the cost of goods sold on October 24 and (B) the inventory on October 31.