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    socki420's Avatar
    socki420 Posts: 4, Reputation: 1
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    #1

    Nov 10, 2008, 04:11 PM
    Lifo Vs. Fifo
    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's Avatar
    socki420 Posts: 4, Reputation: 1
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    #2

    Nov 10, 2008, 04:12 PM

    Using Both Fifo and Lifo
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #3

    Nov 12, 2008, 09:59 PM

    You need some kind of sales info for this question otherwise LIFO and FIFO are the same.
    socki420's Avatar
    socki420 Posts: 4, Reputation: 1
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    #4

    Nov 13, 2008, 10:52 AM

    Im sorry codyman, Using the perpetual inventory system I sold 127 units between Jan. 16 and 23
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    codyman144 Posts: 544, Reputation: 31
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    #5

    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #6

    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.
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