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Cost of the ending inventory

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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

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Solution Preview

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 ...

Solution Summary

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.