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FIFO Perpetual Glowlight Inc. sells Widgets. Their inventor for Q1 2022 involved the following: Inventory (Purchases): Batch Date No. Unit price 0 (Begin) N/A 120
FIFO Perpetual
Glowlight Inc. sells Widgets. Their inventor for Q1 2022 involved the following:
Inventory (Purchases):
Batch | Date | No. | Unit price |
0 (Begin) | N/A | 120 | $40 |
1 | 1/10 | 50 | $45 |
2 | 2/2 | 100 | $46 |
3 | 2/28 | 100 | $48 |
The following sales transactions occurred:
Sale | Date | No. | Sale price (each) |
A | 1/21 | 125 | $80 |
B | 2/25 | 50 | $80 |
C | 3/1 | 75 | $80 |
Calculate Ending Inventory and COGS for each Sales Transaction using FIFO Perpetual
LIFO
- Assumes that units sold are most recently acquired (newest) units
- Ending inventory consists of cost of least recently acquired (oldest) units
- Perpetual calculate COGS by selling newest units available at the end of the period
- Periodic calculate COGS by selling newest units available at the end of the period
- Batches sold assigned by order of sale
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