LIFO, Perpetual and Periodic Riedel Company's inventory records showed the following transactions for the fiscal period ended June 30: Units Cost/Unit June 1 Inventory 700 $6.20 June 3 Purchase 400 6.40 June 15 Sales @ $12.00 300 June 22 Sales @ $12.50 600 June 30 Purchase 600 6.70 Required: 1. Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming both a perpetual and a periodic inventory system. If required, round your answers to the nearest dollar. LIFO - periodic: Ending inventory $fill in the blank 1 Cost of goods sold $fill in the blank 2 LIFO - perpetual: Ending inventory $fill in the blank 3 Cost of goods sold $fill in the blank 4 2. Under which of the following assumptions may the cost of goods sold include the costs of the most latest purchases of the period, even though those purchases were made after the sales took place? Under which of the following assumption may the cost of goods sold is calculated when each sale is made and, therefore, include the cost of the most recent purchases at that time.
LIFO, Perpetual and Periodic Riedel Company's inventory records showed the following transactions for the fiscal period ended June 30: Units Cost/Unit June 1 Inventory 700 $6.20 June 3 Purchase 400 6.40 June 15 Sales @ $12.00 300 June 22 Sales @ $12.50 600 June 30 Purchase 600 6.70 Required: 1. Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming both a perpetual and a periodic inventory system. If required, round your answers to the nearest dollar. LIFO - periodic: Ending inventory $fill in the blank 1 Cost of goods sold $fill in the blank 2 LIFO - perpetual: Ending inventory $fill in the blank 3 Cost of goods sold $fill in the blank 4 2. Under which of the following assumptions may the cost of goods sold include the costs of the most latest purchases of the period, even though those purchases were made after the sales took place? Under which of the following assumption may the cost of goods sold is calculated when each sale is made and, therefore, include the cost of the most recent purchases at that time.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LIFO, Perpetual and Periodic
Riedel Company's inventory records showed the following transactions for the fiscal period ended June 30:
| Units | Cost/Unit | |||
|---|---|---|---|---|
| June 1 Inventory | 700 | $6.20 | ||
| June 3 Purchase | 400 | 6.40 | ||
| June 15 Sales @ $12.00 | 300 | |||
| June 22 Sales @ $12.50 | 600 | |||
| June 30 Purchase | 600 | 6.70 |
Required:
| 1. | Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming both a perpetual and a periodic inventory system. If required, round your answers to the nearest dollar. |
LIFO - periodic:
Ending inventory $fill in the blank 1
Cost of goods sold $fill in the blank 2
LIFO - perpetual:
Ending inventory $fill in the blank 3
Cost of goods sold $fill in the blank 4
| 2. | Under which of the following assumptions may the cost of goods sold include the costs of the most latest purchases of the period, even though those purchases were made after the sales took place? |
| Under which of the following assumption may the cost of goods sold is calculated when each sale is made and, therefore, include the cost of the most recent purchases at that time. |
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