Date Units Price/Unit Total Cost
1-Dec Beginning Inventory 800 $40.00 $32,000.00
8-Dec Units Sold 600 $76.00 $45,600.00
14-Dec Units purchased 1200 $50.00 $60,000.00
18-Dec Units sold 1,080 $76.00 $82,080.00
30-Dec Units Purchased 800 $60.00 $48,000.00
Ending Inventory= 920 units =54000
Calculate FIFO and LIFO
periodic Inventory System
800 units +2000 units - 1680 = 1120 units
FIFO
800 x 60 +320 units @50 =64000
LIFO
800x40+320x50=48000
Perpetual Inventory Periodic
Date Purchases Sales Total Cost
1-Dec Beginning Inventory Balance 800 @40 $32,000.00
8-Dec sold 600 @40 End units @40 $8,000.00
14-Dec 1,2000 @50 = 60000 1200 units @ 50 $60,000.00
$680,000.00
18-Dec sold 200 @40=8000
sold 880 @50=44000
30-Dec 52000 320 units @50 = $16,000.00
800 units @60= $48,000.00
total $64,000.00
LIFO Perpetual
1-Dec Beginning Balance 800 units @40 = 32000
8-Dec sold 600 units 240= 24000 200 units @ 40=8000
14-Dec 1,2000 @50 = 60000 1200 units @ 50 $60,000.00
680000
1080 x50 = 54000 200 units @ 40=8000
200 units left @40=8000
1200 units *50=60000
200 units *40+880x50=52000
120 units *50=6000
800 units *60= 48000
The Flying Pigs Corporation sells roller skates for the swine market and imports them from China. These are the most recent pu
January: 1,000 units @ $9 each = $9,000
February: 1,000 units @ $10 each = $10,000
Total inventory purchases: $9,000 + $10,000 + $11,000 = $30,000
Beginning inventory: 1,000 units @ $8 each = $8,000
Consumption: 3,000 units were used in production during this period
Sales: 3,000 pair of skates were sold a @35 each = 105,000
LIFO
Cost of goods sold = Beginning inventory + Inventory purchases - Ending inventory Cost of goods sold =
calculate under fifo and lifo FIFO
Cost of goods sold =
Beginning inventory: 1,000 units @ $8 each = $8,000
Units purchased 1000 x 9= 9,000
Units purchased 1000 x10=10,000
Total inventory purchases: $9,000 + $10,000 + $11,000 = $30,000
Date Purchases Sales
Beginning 1000 @ 8 = 8000
January 1000 @9 = 9000
February 1000 @ 10 = 10,000
sold 3000 @35= 105,000
LIFO
Cost of goods sold = $8,000 + $30,000 - $8,000 = $30,000
FIFO
Cost of goods sold = $8,000 + $30,000 - $11,000 = $27,000
Under LIFO, the last units purchased are sold first; this leaves the oldest units at $8 still in inventory.
The value of the ending inventory with LIFO: 1,000 units x $8 = $8,000
With FIFO, the oldest units at $8 were sold, leaving the newest units purchased at $11 remaining in invent
The ending inventory value using FIFO: 1,000 units x $11 = $11,000. (8000+3000=11000)
se are the most recent purchases and sales figures:
Cost of goods sold = $8,000 + $30,000 - $8,000 = $30,000
Cost of goods sold = $8,000 + $30,000 - $11,000 = $27,000
till in inventory. Because this method assumes that the most recently purchased items are sold, the value of the
1 remaining in inventory. Ending inventory is valued by the cost of items most recently purchased.
are sold, the value of the ending inventory is based on the cost of the oldest items.
urchased.
Bike LTD purchased 10 bikes during January and sold 6 bikes, details of which are as follows:
January 1 Purchased 5 bikes @ $50 each
January 5 Sold 2 bikes
January 10 Sold 1 bike
January 15 Purchased 5 bikes @ 70 each
January 25 Sold 3 bikes
Date Purchase Issues Closing Inventory
Units Price/unit Total units price/unit total units price/unit
1-Jan 5 50 250 5 50
5-Jan 2 50 100 3 50
10-Jan 1 50 50 2 50
15-Jan 5 70 350 5 70
15-Jan 7
25-Jan 2 50 100
1 70 70 4 70
Calculate the value of inventory under fifo
COGS = $320 Ending inv. under fifo = $280
COGS=(5x50)+(1x70)=320
EI=4x70=280
Total Cost of Good Sold 6 320.00
Ending Inventory 4 280.00
osing Inventory
total
250
150
100
350
450
280
