Option #1: Inventory Entries Practice Exercises

Below is a record of the purchases and sales of inventory throughout the first four months:

	Units	Cost/Price Per Unit
1/1/x7 Beginning Balance	100	$3.50
1/31/x7 Purchase	125	$4.00
2/15/x7 Purchase	250	$4.50
2/25/x7 Sale	150	$7.75
3/10/x7 Purchase	300	$5.00
3/31/x7 Purchase	75	$5.50
4/10/x7 Sale	225	$8.25
4/15/x7 Purchase	100	$6.00
4/30/x7 Sale	350	$8.50

Requirements:

1. How many units were available for sale throughout the year?
2. What was the total value of all goods available for sale throughout the year?
3. How many physical units were sold?
4. How many physical units are in ending inventory?
5. What is the total sales value for all three sales?

	Units	Price Per Unit	Total
2/25/x7 Sale
4/10/x7 Sale
4/30/x7 Sale
Total

Each assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Note: The download the template required for this assignment is located in the Module 4 folder.

Option #2: LIFO Perpetual vs. LIFO Periodic

Below is a record of the purchases and sales of inventory throughout the first four months.

	Units	Cost/Price Per Unit
1/1/x7 Beginning Balance	100	$3.50
1/31/x7 Purchase	125	$4.00
2/15/x7 Purchase	250	$4.50
2/25/x7 Sale	150	$7.75
3/10/x7 Purchase	300	$5.00
3/31/x7 Purchase	75	$5.50
4/10/x7 Sale	225	$8.25
4/15/x7 Purchase	100	$6.00
4/30/x7 Sale	350	$8.50

Requirement

1. Calculate the cost of goods sold under the LIFO Perpetual Method for each of the below sales.

	Units	Cost Per Unit	Total
2/25/x7 Sale
Show Detail
Show Detail
4/10/x7 Sale
Show Detail
Show Detail
4/30/x7 Sale
Show Detail
Show Detail
Total

2. Calculate the cost of goods sold under the LIFO Periodic Method for each of the below sales.

	Units	Cost Per Unit	Total
2/25/x7 Sale
Show Detail
Show Detail
4/10/x7 Sale
Show Detail
Show Detail
4/30/x7 Sale
Show Detail
Show Detail
Total

3. What is the main reason for the differences in the two methods?

Each assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.