Question

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:

a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.) This chart yellow boxes need to be filled

b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value. Yellow boxes need to be filled

Periodic FIFO Beg. Inventory Purchases: Purchase 1 Purchase 2 Total Cost of Goods Available for sale Inventory Balance Cost of Goods Sold of cost of Goods of units cost per Available for units unit Sale sold of units Cost per Cost of Cost per Ending unit Goods in ending unit Inventory inventory 10 4,000 400 500 12 6,000 300 4,200 14 0 0 0 1,200 14,200