Page 312 - Accounting Principles (A Business Perspective)

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Purchased Sold Balance
Date Unit Total Units Unit Total Units Unit
Units Cost Cost Cost Cost
Beg. inv. 6,250 $3.00 $18,750
Feb. 3 5,250 $3.00 $15,750 1,000 3.00 3,000
Mar. 15 5,000 $3.12 $15,600 1,000 3.00 3,000
5,000 3.12 15,600
May 4 1,000 3.00 3,000 1,500 3.12 4,680
3,500 3.12 10,920
May 10 8,750 3.30 28,875 1,500 3.12 4,680
8,750 3.30 28,875
Aug. 12 6,250 3.48 21,750 1,500 3.12 4,680
8,750 3.30 28,875
6,250 3.48 21,750
Sept. 16 1,500 3.12 4,680 2,250 3.30 7,425
6,500 3.30 21,450 6,250 3.48 21,750
Oct. 9 2,250 3.30 7,425 1,250 3.48 4,350
5,000 3.48 17,400
Nov. 20 3,750 3.72 13,950 1,250 3.48 4,350
3,750 3.72 13,950
Ending inventory = (1,250 X $3.48) + (3,750 X $3.72) = $18,300
(b) Periodic:
Purchased Units Unit Total
Cost Cost
November 20 3,750 $3.72 $ 13,950
August 12 1,250 3.48 4,350
5,000 $ 18,300 *
*Note that the cost of ending
inventory is the same as under
perpetual.
3. Ending inventory under LIFO:
(a) Perpetual:
Purchased Sold Balanc
e
Date Units Unit Total Units Unit Total Units Unit
Cost Cost Cost Cost
Beg. inv. 6,250 $3.00 $18,750
Feb. 3 5,250 $3.00 $15,750 1,000 3.00 3,000

Mar. 15 5,000 $3.12 $15,600 1,000 3.00 3,000
5,000 3.12 15,600
May 4 4,500 3.12 14,040 1,000 3.00 3,000
500 3.12 1,560
8,750 3.30 28,875 1,000 3.00 3,000
May 10 500 3.12 1,560
8,750 3.30 28,875
Aug. 12 6,250 3.48 21,750 1,000 3.00 3,000
500 3.12 1,560
8,750 3.30 28,875
6,250 3.48 21,750
Sept. 16 6,250 3.48 21,750 1,000 3.00 3,000
1,750 3.30 5,775 500 3.12 1,560
7,000 3.30 23,100
Oct. 9 7,000 3.30 23,100 1,000 3.00 3,000
250 3.12 780 250 3.12 780
Nov. 20 3,750 3.72 13,950 1,000 3.00 3,000
250 3.12 780
3,750 3.72 13,950
Ending inventory (1,00 X $3.00) + (250 X $3.12) + (3,750 $3.72) = $17,730
= 0 X
(b) Periodic:

Accounting Principles: A Business Perspective 313 A Global Text