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socki420
Nov 10, 2008, 04:11 PM
I have to calculate the cost of ending inventory and COGS (cost of goods sold). Every time I try I come up with something different, anyone like to help me?

Beginning Inventory Jan. 1 64 units @ $11 TC $ 704
Purchase Jan. 15 249 units @ $12 TC $ 2988
Purchase Jan. 24 103 units @ $13 TC $ 1339

socki420
Nov 10, 2008, 04:12 PM
Using Both Fifo and Lifo

codyman144
Nov 12, 2008, 09:59 PM
You need some kind of sales info for this question otherwise LIFO and FIFO are the same.

socki420
Nov 13, 2008, 10:52 AM
Im sorry codyman, Using the perpetual inventory system I sold 127 units between Jan. 16 and 23

codyman144
Nov 13, 2008, 12:32 PM
Socki

Please give it a try and walk me through what you are doing and how you come up with it. Then I will see what you are doing wrong and help. Thanks C

pready
Nov 14, 2008, 03:24 PM
In FIFO you sold 64 units of your Jan 1 Inventoy and 63 units of your Jan 15 inventory.
Take the these numbers X your unit costs to get COGS.

In LIFO you sold 127 unit of your 15 Jan inventory. Take these units X the unit price to get COGS.

COGS will be different between the 2 methods because of the different unit costs used.