Miami Discount Company inventory records show: Date

Transaction Type

UnitsUnit Cost

Quantity Remaining

1-Jan

Beginning inventory

3,000$38.00 14-FebPurchase900$39.00 18-MarPurchase2,400$40.00 15-AprSale2,800 21-JulPurchase1,800$40.30 20-AugSale2,000 27-SepPurchase1,800$40.60 3-OctSale1,500 27-NovPurchase600$41.00 Miami Discount Company uses the perpetual inventory system.

Calculate Cost of Goods Sold for each sale and the value of ending inventory using the FIFO Method.

Calculate Cost of Goods Sold for each sale and the value of ending inventory using the LIFO Method.

FIFO Method

Remember, calculate cost of goods sold for each SALE! FIFO Method uses (select one):

Oldest inventory/
purchase first

Most recent purchase/ inventory first

QtyCost

Total Cost of Goods Sold

April 15 Sold 2,800 units

August 20 Sold 2,000 units

October 3 Sold 1,500 units

Total cost of goods sold for the year for

units sold

December 31 Ending Inventory: Total Ending
Inventory units Dollar amount LIFO Method Date

Transaction Type

UnitsUnit Cost

Quantity Remaining

1-Jan

Beginning inventory

3,000$38.00 14-FebPurchase900$39.00 18-MarPurchase2,400$40.00 15-AprSale2,800 21-JulPurchase1,800$40.30 20-AugSale2,000 27-SepPurchase1,800$40.60 3-OctSale1,500 27-NovPurchase600$41.00

Remember, calculate cost of goods sold for each SALE! LIFO Method uses (select one):

Oldest inventory/ purchase first

Most recent purchase/ inventory first

QtyCost

Total Cost of Goods Sold

April 15 Sold 2,800 units

August 20 Sold 2,000 units

October 3 Sold 1,500 units

Total cost of goods sold for the year for

units sold

December 31 Ending Inventory: Total Ending
Inventory units Dollar
amount Exercise 2

London Company's inventory transactions during the year are provided below. Calculate Cost of Goods Sold for each sale and the value of ending inventory using the FIFO Method and the LIFO Method.

FIFO Method Date

Transaction Type

UnitsUnit Cost

Quantity Remaining

1-Jan

Beginning inventory

160$24.00 8-JanSale40 11-JanPurchase80$30.00 15-JanPurchase70$32.00 22-JanSale80

Remember, calculate cost of goods sold for each SALE! FIFO Method uses (select one):

Oldest inventory/ purchase first

Most recent purchase/ inventory first

QtyCost

Total Cost of Goods Sold

January 8 Sold 40 units

January 22 Sold 80 units

Total cost of goods sold for January for

units sold

January 31 Ending Inventory:

LIFO Method Date

Transaction Type

UnitsUnit Cost

Quantity Remaining

1-Jan

Beginning inventory

160$24.00 8-JanSale40 11-JanPurchase80$30.00 15-JanPurchase70$32.00 22-JanSale80

Remember, calculate cost of goods sold for each SALE! LIFO Method uses (select one):

Oldest inventory/ purchase first

Most recent purchase/ inventory first

QtyCost

Total Cost of Goods Sold

January 8 Sold 40 units

January 22 Sold 80 units

Total cost of goods sold for January for

units sold

January 31 Ending Inventory: