Purchase Solution

FIFO, LIFO calculations under periodic and perpetual method

Not what you're looking for?

Ask Custom Question

Cost-flow assumptions?FIFO and LIFO using periodic and perpetual systems.
The inventory records of Twilight, Inc., reflected the following information for the year
ended December 31, 2005:
Number of Unit Total
Units Cost Cost
Inventory, January 1 150 25 3750
Purchases:
30-May 250 26 6500
28-Sep 350 28 9800
Goods available for sale 750 20050
Sales:
February-05 100
June-05 250
November-05 300
Total sales 650
Inventory, December 31 100

how do you solve for FIFO AND LIFO under periodic and perpetual system

Purchase this Solution

Solution Summary

The solution explains how to calculate the cost of goods sold, ending inventory under FIFO and LIFO using perpetual and periodic methods

Solution Preview

Total goods available for sale are 750 units and the units sold are 650. The ending inventory will be 100 units.

Let us take FIFO first. In FIFO, the assumption is that goods purchased first are sold first. The cost of goods sold and ending inventory under FIFO is the same under both perpetual and periodic system.
The ending inventory of 100 units will be the latest purchases which is 28 Sep. The ending inventory is 100X28= ...

Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

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

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.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basics of corporate finance

These questions will test you on your knowledge of finance.