Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit. Purchase 1 was 610 units at $7 per unit. Purchase 2 was 940 units at $8 per unit. Required:a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.) b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.) Periodic FIFOCost of Goods Available for SaleCost of Goods SoldInventory Balance# of unitsin endinginventoryCost of Goods# ofunitsCost per# of unitsCost perCost ofGoods SoldCost perEndingInventoryAvailable forunitsoldunitunitSaleBeg. Inventory$Purchases:Purchase 1Purchase 2Total$$$ Periodic LIFOCost of Goods Available for SaleCost of Goods SoldInventory Balance# of unitsin endinginventoryCost of Goods# ofunitsCost per# of unitsCost perunitCost perCost ofEndingInventoryAvailable forunitsoldGoods SoldunitSaleBeg. InventoryPurchases:Purchase 1Purchase 2Total

FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Answered: Sales during the year were 1,220 units.…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 2PEB: Beginning inventory, purchases, and sales for Item Delta are as follows: Assuming a perpetual...

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Question

Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit. Purchase 1 was 610 units at $7 per unit. Purchase 2 was 940 units at $8 per unit.

Required:

a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.)

b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.)