Problem 1

Matlock Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2012.

Quantities

Unit Price

Date Purchased Sold Balance of Purchase

January 11 400 $3.75

January 24 1,300 1,700 $3.90

February 8 300 1,400

March 16 560 840

June 11 600 1,440 $4.10

Instructions

(a) Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method on the attached form.

(b) Compute the cost of goods sold for the first six months under the periodic FIFO inventory pricing method.

ENDING INVENTORY - PERPETUAL