Inventory Valuation: Complications with a Perpetual System
Refer to Practice 9 6. Assume that the sales occurred as follows:
|
|
Units Sold |
|
January 16 |
100 |
|
July 15 |
600 |
|
November 1 |
1,300 |
|
Total |
2,000 |
Compute (1) cost of goods sold and (2) ending inventory assuming (a) FIFO inventory valuation, (b) LIFO inventory valuation, and (c) average cost inventory valuation. The company uses a perpetual inventory system.
Practice 9 6
Inventory Valuation: FIFO, LIFO, and Average
The company reported the following inventory data for the year:
|
|
|
Cost per |
|
|
Units |
Unit |
|
Beginning Inventory |
300 |
$1750 |
|
Purchases: |
|
|
|
March 23 |
900 |
1800 |
|
September 16 |
1,200 |
1825 |
|
Units remaining at year end: |
400 |
|
Compute (1) cost of goods sold and (2) ending inventory assuming (a) FIFO inventory valuation, (b) LIFO inventory valuation, and (c) average cost inventory valuation. The company uses a periodic inventory system.