FIFO and LIFO
Not what you're looking for?
Cost-flow assumptions-FIFO and LIFO using periodic and perpetual systems.
The inventory records of Cushing, Inc., reflected the following information for the year ended
December 31, 2004:
Number of Units Cost Total Cost
Inventory, January 1 100 $13 $1,300
PURCHASES:
May 30 160 15 2,400
September 28 200 16 3,200
Goods available for sale 460 $6,900
Sales:
February 22 (70)
June 11 (150)
November 1 (190)
Inventory, December 31 50
Required:
a. Assume that Cushing, Inc., uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.
b. Assume that Cushing, Inc., uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.
c. Explain why the FIFO results for cost of goods sold and ending inventory are the same in your answers to parts a and b, but the LIFO results are different.
d. Explain why the results from the LIFO periodic calculations in part a cannot possibly represent the actual physical flow of inventory items.
Purchase this Solution
Solution Summary
FIFO and LIFO are studied.
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Introduction to Finance
This quiz test introductory finance topics.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.