Question

Question content area the following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: date line item description units and cost june 1 balance 25 units at $60 6 sale 20 units 8 purchase 20 units at $61 16 sale 10 units 20 purchase 20 units at $62 23 sale 25 units 30 purchase 15 units at $63 determine the cost of the ending inventory at june 30, using (a) the first-in, first-out (fifo) method and (b) the last-in, first-out (lifo) method. identify the quantity, unit price, and total cost of each lot in the inventory. a. first-in, first-out (fifo): date quantity unit price total cost fill in the blank 2 units at $fill in the blank 3 $fill in the blank 4 fill in the blank 6 units at $fill in the blank 7 fill in the blank 8 total $fill in the blank 9 b. last-in, first-out (lifo): date quantity unit price total cost fill in the blank 11 units at $fill in the blank 12 $fill in the blank 13 fill in the blank 15 units at $fill in the blank 16 fill in the blank 17 fill in the blank 19 units at $fill in the blank 20 fill in the blank 21 total $fill in the blank 22

Answer 1

Using the FIFO method, the cost of the ending inventory at June 30 is $2,465. Using the LIFO method, the cost of the ending inventory is $2,795.

Step-by-step explanation:

To calculate the cost of the ending inventory at June 30 using the first-in, first-out (FIFO) method, we need to consider the chronological order of purchases and sales. The remaining 5 units from the June 1 balance would be valued at $60 each, resulting in a total cost of $300. The 20 units purchased on June 8 would be valued at $61 each, totaling $1,220. Lastly, the remaining 15 units from the June 30 purchase would be valued at $63 each, resulting in a total cost of $945. Therefore, the cost of the ending inventory using FIFO would be $300 + $1,220 + $945 = $2,465.

To calculate the cost of the ending inventory at June 30 using the last-in, first-out (LIFO) method, we start with the most recent purchase. The 15 units purchased on June 30 would be valued at $63 each, resulting in a total cost of $945. Then, the 20 units purchased on June 20 would be valued at $62 each, totaling $1,240. Lastly, the remaining 10 units from the June 16 sale would be valued at $61 each, resulting in a total cost of $610. Therefore, the cost of the ending inventory using LIFO would be $945 + $1,240 + $610 = $2,795.