Purchase Solution

Cost of Goods Sold and Ending Inventory - FIFO Versus LIFO

Not what you're looking for?

Ask Custom Question

Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold.

Date Explanation Units Unit Cost Total Cost
1-May Inventory 30 $8.91 $267.30
15-May Purchases 25 $11.91 $297.75
24-May Purchases 35 $12.91 $451.85
90 $1,016.90

Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods

Purchase this Solution
Solution Summary

This solution illustrates how to compute the cost of goods sold and ending inventory value under the first-in, first-out (FIFO) and last-in, first-out (LIFO) methods.

Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

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.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • First In First Out (FIFO) versus Last In First Out (LIFO)

    The intern noticed that the client used the FIFO method of determing ending inventory and cost of goods sold.

  • FIFO vs LIFO

    501915 FIFO vs LIFO 1. Inventory and cost of goods sold figures prepared under the LIFO cost flow assumption versus the FIFO cost flow assumption can differ dramatically. a.

  • Cost Flow Methods: FIFO and LIFO

    Ending Inventory FIFO = $26,886 LIFO (1,500 x 7) + (1,500 x 8) = $22,500 Average cost 3,000 x 8.961 = $26,883 Cost of Goods Sold Cost of goods available for sale - ending inventory = cost of goods sold FIFO = $89,614 LIFO 116,500 - 22,500

  • Inventory calculations in Financial Accounting

    FIFO Ending Inventory $ 1221 LIFO Ending Inventory $ (b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.

  • Financial Accounting : FIFO and LIFO

    (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.

  • Calculation of the ending inventory

    Cost of Goods Sold will be higher under FIFO, and lower under LIFO.

  • FiFO and LIFO Inventory

    (under either method) Cost of goods sold under LIFO $300,000 Cost of goods sold under FIFO: Inventory at December 31, 2008 $106,300 Cost of goods purchased in 2009 $315,300 Cost of goods available for sale $421,600 Inventory at December 31

  • Perpetual & Periodic Inventory System

    30 and the cost of goods sold for June under a. first-in, first-out (FIFO) method b. last-in, first-out (LIFO) method c. average cost method 3.Under the perpetual inventory system, determine the cost of inventory on hand at June 30 and the cost of

  • FIFO and LIFO Periodic and Perpetual

    @ $27 A) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

View More Related Solutions