QUESTION (1)
- Pine Shop shows the following data related to an item of inventory:
Inventory, January 1 100 units @ $5.00
Purchase, January 9 300 units @ $5.40
Purchase, January 19 90 units @ $6.00
Inventory, January 31 120 units
Instructions
(a) What value should be assigned to the ending inventory using FIFO?
(b) What value should be assigned to cost of goods sold using LIFO?
QUESTION (2)
During June, the following changes in inventory item 27 took place:
June 1 Balance 1,400 units @ $24
14 Purchased 800 units @ $35
24 Purchased 700 units @ $30
8 Sold 400 units @ $50
10 Sold 900 units @ $40
29 Sold 600 units @ $44
Perpetual inventories are maintained.
Instructions
What is the cost of the ending inventory for item 27 under the following methods? (Show calculations.)
(a) FIFO.
(b) LIFO.