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Ending Inventory - LIFO, FIFO and Perpetual system

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Carlson auto dealers inc. sells a handmade automobile as its only product. Each automobile is identical;however they can be distinguished by their unique ID number.

At the beginning of 2009, Carlson had three cars in inventory, as follows:

Car ID Cost
203 60000
207 60000
210 63000

During 2009 each of the three autos sold for 90000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID Cost Selling Price
211 63000 90000
212 63000 93000
213 64500 not sold
214 66000 96000
215 69000 100500
216 70500 not sold
217 72000 105000
218 72300 106500
219 75000 not sold

Required

1.Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system

2. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system

3. Calculate ending inventory and cost of goods sold assumeing the average cost method and periodic inventory system.

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Solution Summary

The solution computes ending inventory based on Lifo, Fifo, and perpetual system for Carlson Auto Dealers Inc.

Solution Preview

Looking at the question, you can identify that 3 units are unsold for the year

1 - Ending Inventory = ...

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