The Foley Company is a multi-product firm. Presented below is information concerning one of their products.
Date Transaction Quantity Cost
1-Jan Beginning Inventory 1,000 $12
4-Feb Purchase 2,000 $13
20-Feb Sale 1,000
2-Apr Purchase 4,000 $15
4-Nov Sale 4,000
Compute the cost of the ending inventory, assuming Foley uses a.) Periodic -FIFO b.) Perpetual-LIFO© BrainMass Inc. brainmass.com March 21, 2019, 8:39 pm ad1c9bdddf
Total units are 1,000+2,000+4,000=7,000. Sold are 1,000+4,000=5,000. Ending inventory is 2,000 units
a) Periodic - FIFO: In FIFO we assume that the earliest units are sold first ...
The solution explains how to calculate the cost of the ending inventory using Periodic -FIFO and Perpetual-LIFO. The cost of the ending inventory are provided.