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
30-May 250 26 6500
28-Sep 350 28 9800
Goods available for sale 750 20050
Total sales 650
Inventory, December 31 100
how do you solve for FIFO AND LIFO under periodic and perpetual system© BrainMass Inc. brainmass.com October 24, 2018, 11:08 pm ad1c9bdddf
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= ...
The solution explains how to calculate the cost of goods sold, ending inventory under FIFO and LIFO using perpetual and periodic methods
Calculate FIFO and LIFO using perpetual and periodic inventory methods
FIFO and LIFO?Periodic and Perpetual) The following is a record of Pervis Ellison Company's transactions for Boston Teapots for the month of May 2007.
May 1 Balance 400 units @ $20 May 10 Sale 300 units @ $38
12 Purchase 600 units @ $25 20 Sale 540 units @ $38
28 Purchase 400 units @ $30
Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 560 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO?
Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO.View Full Posting Details