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 InventoryYear 1Buys 15 units at $15Sells 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 unitWhat is COGS?($465)What is Ending Inventory?48Year 2Buys 13 units at $17.Sells 11 units at $32.How many units in Ending Inventory?5 units at $17 each unitWhat is COGS?($184)What is Ending Inventory?85Reminder: Purchase costs are different than sales prices.Year 1Stockholder's Equity CashInventoryContributed CapitalRetained Earnings1-Jan120000010000020000-225225300300 revenue-150-150 COGS exp-288288640640 revenue-315-315 COGS exp31-Dec1204274810000020475Year 2CashInventoryContributed CapitalRetained Earnings1-Jan1204274810000020475-221221352352 revenue-184-184 COGS exp1205588510000020643
Assume ABC uses LIFOThey account for inventory using the perpetual method.