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    lori1981's Avatar
    lori1981 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Mar 3, 2006, 09:58 PM
    Lifo/fifo
    I would appreciate any help I could get on these. This stuff really confuses me.


    Aug. 1 Balance 200@$3.20
    Aug. 2 150@$5.50 Sales
    Aug. 4 550@$3.10 Purchases
    Aug. 5 [email protected] Sales
    Aug. 7 [email protected] Purchases
    Aug. 8 [email protected] Sales
    Aug. 12 [email protected] Sales
    Aug. 13 [email protected] Purchases
    Aug. 20 [email protected] Sales
    Aug. 21 [email protected] Purchases
    Aug. 29 [email protected] Sales

    If a periodic inventory system is used, the LIFO basis ending inventory is ___________.
    a)$1027.50 b)$1040.00 c)$1072.50 d)1117.50

    If a perpetual inventory system is used, the LIFO basis ending inventory is __________.
    a)$1027.50 b)$1040.00 c)$1072.50 d)1117.50

    If a perpetual inventory system is used, the FIFO basis ending inventory is __________.
    a)$1027.50 b)$1040.00 c)$1117.50 d)$1137.50
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Mar 4, 2006, 06:41 PM
    Ending Inventory is 325 units.

    Periodic Inventory, LIFO method
    LIFO - take the value of the FIRST 325 units, as they are sold last so they are still on hand.

    Aug. 1 Balance 200@$3.20
    Aug. 2 150@$5.50 Sales
    Aug. 4 550@$3.10 Purchases
    200 @ 3.20 = $640
    125 @ 3.10 = $387.50
    Total = $1,027.50

    Quote Originally Posted by CaptainForest
    ANSWER: A: $1,027.50
    lori1981's Avatar
    lori1981 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Mar 4, 2006, 06:49 PM
    Thanks so much for help with that question. I greatly appreciate it.
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