Answer:
UNDER FIFO
Cost of Goods Sold is 25 units with a total value of $419
Ending Inventory is 8 units @ $23 giving total value of $184
UNDER LIFO
Cost of Goods Sold is 25 units with a total value of $483
Ending Inventory is 8 units @ $15 giving total value of $120
Step-by-step explanation:
Jun.1 Beginning merchandise inventory 17units@$15each
12 Purchase 5units@$19each
20 Sale 14units@$37each
24 Purchase 11units@$23each
29 Sale 13units@$37each
1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method.
FIFO INVENTORY METHOD
Date Particulars Unit Price Units Amount
Jun-01 Opening Stock 15 17 225
Jun-12 Purchases 19 5 95
Jun-24 Purchases 23 11 253
Goods Available For Sale 33 603
15 17 255
19 5 95
23 3 69
Cost of Goods Sold 25 419
Ending Inventory 23 8 184
2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method.
LIFO INVENTORY METHOD
Date Particulars Unit Price Units Amount
Jun-01 Opening Stock 15 17 225
Jun-12 Purchases 19 5 95
Jun-24 Purchases 23 11 253
Goods Available For Sale 33 603
23 11 253
19 5 95
15 9 135
Cost of Goods Sold 25 483
Ending Inventory 15 8 120