Catlet Co. uses a periodic inventory system. Its records show the following for

Question

   Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold.  

35

591.85

90

$1,376.90

  Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.  (Round answers to 2 decimal places, e.g. 10.50.)

AE6-5 Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold. Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. (Round answers to 2 decimal places, e.g. 10.50.)

Explanation / Answer

Hi,

Please find the answer as follows:

Ending Inventory:

FIFO = (90 - 65)*16.91 = 422.75

LIFO = (90 - 65)*12.91 = 322.75

Cost of Goods Sold:

FIFO = 30*12.91 + 25*15.91 + 10*16.91 = 954.15

LIFO = 35*16.91 + 25*15.91 + 5*12.91 = 1054.15

Thanks.

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