Exercise 2 LIFO Perpetual

Lighting Designs by Laura has the following list of beginning inventory, purchases, and sales for the month of May:

1^st Beginning Inventory 500 light bulbs at $0.75

6^th Purchase 300 light bulbs at $0.55

9^th Sale 650 light bulbs

12^th Purchase 200 light bulbs at $0.60

16^th Sale 275 light bulbs

22^nd Purchase 200 light bulbs at $0.65

30^th Sale 125 light bulbs

Calculate the cost of ending inventory using the last-in, first-out method under a perpetual inventory system.

Exercise 3 Periodic (FIFO, LIFO, Average)

Spring River sells bottled water using a periodic inventory system. The following is a list of beginning inventory and purchases for bottles used in manufacturing their spring water.

Beginning Inventory 6,000 bottles at $0.20

First Purchase 4,500 bottles at $0.22

Second Purchase 5,600 bottles at $0.24

Third Purchase 2,000 bottles at $0.26

At the end of the year, 2,500 bottles remained in ending inventory. What is cost of merchandise sold and ending inventory under the FIFO, LIFO and average cost methods? Present your answers in the following form (in an excel spreadsheet):

Cost

Inventory Method Merchandise Inventory Merchandise Sold

a. FIFO $ $

b. LIFO

c. Weighted average cost