Ballas Co. Periodic Inventory System FIFO And LIFO Methods
Business Finance
EX6-5:
Ballas Co. uses a periodic inventory system. Its records show the following for
the month of May, in which 68 units were sold.
UNITS UNIT COST TOTAL COST
May 1 Beg. Inventory
30
$8
$240
15 Purchases
25
$ 11
$275
24 Purchases 35
$ 12
$420
Totals
90
$935
Compute the ending inventory at May 31 and cost of goods sold (COGS) using the FIFO
and LIFO methods. Show your work with “proof” of how COGS was calculated.
EX 6-6
Moath Company reports the following for the month of June. 800 units were
sold during the month.
UNITS
UNIT COST TOTAL COST
June 1 Beg Inventory
200
$ 5
$ 1,000
12 Purchases
400
$ 6
$ 2,400
23 Purchases
300
$ 7
$ 2,100
Compute the ending inventory and the cost of goods sold (COGS) under FIFO and LIFO
methods
EX 6-7:
Shawn Co. had 100 units in beginning inventory at a total cost of $10,000.
The company purchased 200 units at a total cost of $26,000. At the end of the year,
Shawn had 75 units in ending inventory.
Compute the cost of goods sold (COGS) under
1) FIFO 2) LIFO 3) AVERAGE COST
