FIFO & LIFO

Name ____________________________________________
ACCT 223 – Ch 5 – Inventory
Complete the problems below. Refer to the example problems done in class and in the textbook.
1) Beginning inventory was 500 units at a cost of $20. Two purchases were made
during the year, the first in May of 400 units at $22 each, and the second in
October of 700 units at $24 each. Sales were 1500 units.
Calculate cost of goods sold AND ending inventory under BOTH the LIFO and FIFO methods.
Units
$
Total
Beg Inv
May
Oct
COGAS (total)
Sold (COGS)
End Inv
2) Beginning inventory was 1,000 units at a cost of $50. Three purchases were made
during the year, the first in Jan of 500 units at $51 each, and the second in
July of 300 units at $53 each, and the third in Dec of 200 units at $56 each. Sales were 800 units.
Calculate cost of goods sold AND ending inventory under BOTH the LIFO and FIFO methods.
Units
Beg Inv
Jan
July
Dec
COGAS
Sold (COGS)
End Inv
$
Total