Chapter 6: Inventories

Fortune Company uses the perpetual inventory system for its merchandise inventory. Calculate the cost of goods sold and the ending inventory cost for the month of March, using (a) FIFO and (b) LIFO.

March 1 Beginning inventory 120 units @ $330 per unit

3 Purchased 40 units @ $345 per unit

5 Sold 40 units @ $550 per unit

7 Sold 90 units @ $555 per unit

9 Purchased 80 units @ $348 per unit

10 Sold 30 units @ $560 per unit

15 Purchased 50 units @ $350 per unit

17 Sold 45 units @ $575 per unit

24 Sold 35 units @ $562 per unit

1. Using FIFO (First-In, First-Out)

Using LIFO (Last-In, First-Out)

-----------------Purchases-------------- ---------Cost of Goods Sold--------- -----------Ending Inventory------------

Date

Units

Unit Cost

Total

Units

Unit Cost

Total

Units

Unit Cost

Total