M7-19 (Supplement 7A) Calculating Cost of Goods Sold and Ending Inventory under FIFO and LIFO (Perpetual Inventory) [LO 7-S1] Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a perpetual inventory system. The following are the transactions for the month of July.       Units Unit Cost July 1 Beginning Inventory 2,700 $ 47   July 5 Sold 1,350       July 13 Purchased 6,700   51   July 17 Sold 3,700       July 25 Purchased 8,700   57   July 27 Sold 5,700           Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO.

Question

M7-19 (Supplement 7A) Calculating Cost of Goods Sold and Ending Inventory under FIFO and LIFO (Perpetual Inventory) [LO 7-S1]

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a perpetual inventory system. The following are the transactions for the month of July.

 

    Units Unit Cost
July 1 Beginning Inventory 2,700 $ 47  
July 5 Sold 1,350      
July 13 Purchased 6,700   51  
July 17 Sold 3,700      
July 25 Purchased 8,700   57  
July 27 Sold 5,700      
 

 

Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO.

 

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