Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: Jan. 1 Inventory 102 units @ $35 8. Sale 82 units 15 Purchase 113 units @ $37 27 Sale 95 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Jan. 27 and (b) the inventory on Jan. 31. a. Cost of goods sold on Jan. 27 24 b. Inventory on Jan. 31
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: Jan. 1 Inventory 102 units @ $35 8. Sale 82 units 15 Purchase 113 units @ $37 27 Sale 95 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Jan. 27 and (b) the inventory on Jan. 31. a. Cost of goods sold on Jan. 27 24 b. Inventory on Jan. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods**
The units of an item available for sale during the year were as follows:
- **Jan. 1** Inventory: 16 units at $29, totaling **$464**
- **Aug. 13** Purchase: 18 units at $32, totaling **$576**
- **Nov. 30** Purchase: 10 units at $33, totaling **$330**
Total available for sale:
- **44 units**
- **$1,370**
There are 13 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the following methods, rounding the per-unit cost to two decimal places and your final answer to the nearest whole dollar:
a. **First-in, first-out (FIFO) method**: $_____
b. **Last-in, first-out (LIFO) method**: $_____
c. **Weighted average cost method**: $_____
Transcribed Image Text:**Perpetual Inventory Using LIFO**
Beginning inventory, purchases, and sales for Item 88-HX are as follows:
- **Jan. 1**: Inventory - 102 units @ $35
- **Jan. 8**: Sale - 82 units
- **Jan. 15**: Purchase - 113 units @ $37
- **Jan. 27**: Sale - 95 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine:
(a) The cost of goods sold on Jan. 27
(b) The inventory on Jan. 31
- a. Cost of goods sold on Jan. 27: $ ____
- b. Inventory on Jan. 31: $ ____
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