LIFO, Perpetual and Periodic
Response to the following problem:
The inventory records of the Riedel Company showed the following transactions for the fiscal period ended June 30:
|
|
Units
|
Cost/Unit
|
|
June 1 Inventory
|
700
|
$6.20
|
|
June 3 Purchases
|
400
|
6.40
|
|
June 15 Sales @ $12.00
|
100
|
|
|
June 22 Sales @ $12.50
|
600
|
|
|
June 30 Purchases
|
600
|
6.70
|
Required
Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption, assuming both a perpetual and a periodic inventory system. Explain any difference in the final inventory valuations.