Question Details

Compute the cost of goods sold for the first six months under the periodic FIFO inventory 



Ex. 1—FIFO and LIFO-Periodic Josh Beckett shop began operations on January 2, 2010. The following stock record card for baseballs was taken from the records at the end of the year.

					     Units   	             Unit Invoice		     Gross Invoice
			  Date   	  Terms  	  Received  	              Cost	                  Amount 	
			  1/15	Net 30	      50	 16		$  800
			  3/15	1/5, net 30	      65	13		845
			  6/20	1/10, net 30	      90	 12		1,080
			  9/12	1/10, net 30	      84	 10		840
			 11/24	1/10, net 30	      76	9		     684
				Totals		    365			$4,249

A physical inventory on December 31, 2010, reveals that 110 baseballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Josh Beckett Shop uses the invoice price less discount for recording purchases.

Instructions
 (a)	Compute the December 31, 2010, inventory using the FIFO method.
*(b)	Compute the 2010 cost of goods sold using the LIFO method.
Ex. 2—Periodic FIFO and Perpetual LIFO
Matlock Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2010.
		Quantities	
				Unit Price
Date	Purchased	Sold	Balance	of Purchase
January 11	—  	—	400	$2.50
January 24	1,300	—	1,700	$2.60
February 8	—	300	1,400	—
March 16	—	560	840	—
June 11	600	—	1,440	$2.75

Instructions
 (a)	Compute the cost of goods sold for the first six months under the periodic FIFO inventory pricing method.
*(b)	Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method.



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