Chapter 5, Problem 5.5ME

Mini-Exercise 5.5

LO 7, 8

Cost flow assumptions-FIFO and LIFO using a periodic system Sales during the year were 700 units. Beginning inventory was 400 units at a cost of $10 per unit. Purchase 1 was 500 units at $12 per unit. Purchase 2 was 300 units at $14 per unit.

Required:

Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system):

1. FIFO
2. LIFO