FIFO and LIFO - Perpetual Inventory HW(MT 2 STUDY GUIDE)(practice) - Assume ABC always sells the oldest units first(FIFO They account for inventory

FIFO and LIFO - Perpetual Inventory HW(MT 2 STUDY GUIDE)(practice)

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Assume ABC always sells the oldest units first (FIFO) They account for inventory using the perpetual method. Required: Post Year 1 and Year 2 transactions to the spreadsheets below. Company ABC starts with no Inventory Year 1 Buys 15 units at \$15 Sells 10 units at \$30. Buys 18 units at \$16. Sells 20 units at \$32. How many units in Ending Inventory? 3 units at \$16 each unit What is COGS? (\$465) What is Ending Inventory? 48 Year 2 Buys 13 units at \$17. Sells 11 units at \$32. How many units in Ending Inventory? 5 units at \$17 each unit What is COGS? (\$184) What is Ending Inventory? 85 Reminder: Purchase costs are different than sales prices. Year 1 Stockholder's Equity Cash Inventory Contributed Capital Retained Earnings 1-Jan 120000 0 100000 20000 -225 225 300 300 revenue -150 -150 COGS exp -288 288 640 640 revenue -315 -315 COGS exp 31-Dec 120427 48 100000 20475 Year 2 Cash Inventory Contributed Capital Retained Earnings 1-Jan 120427 48 100000 20475 -221 221 352 352 revenue -184 -184 COGS exp 120558 85 100000 20643
Assume ABC uses LIFOThey account for inventory using the perpetual method.