Inventory Valuation Example 1

Date
May 1
May 3
May 8
May 15
May 19
May 25
May 27
May 31

Transactions
Inventory
Purchase
Sale (*1)
Purchase
Purchase
Sale (*2)
Sale (*3)
Ending Inventory
Total

LIFO, Perpetual

Units Purchased
700
100

Units Sold

500
600
200
400
100
1,600

Unit Cost
$10
$12
??
$14
$15
??
??
??

Inventory Units
700
800
300
900
1,100
700
600
600

Sale (*2)

Sale (*3)

1,000

Purchases

Sale (*1)

Ending Inventory

300 x $10
700 x $10
400 x $10
100 x $12

100 x $12
300 x $14

600 x $14
100 x $14
200 x $14
200 x $15
$

19,600

Total Purchases
$

19,600

200 x $15
$

5,200 $

5,800 $

1,400

7,200

Cost of goods sold

Ending Inventory

12,400

7,200
`

LIFO, Periodic

Purchases

Sale (*1)

Sale (*2)

Sale (*3)

Ending Inventory

600 x $10
700 x $10

100 x $10
100 x $12

100 x $12
300 x $14

600 x $14
300 x $14

200 x $15
$

19,600

Total Purchases
$

19,600

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200 x $15
$

7,200 $

5,400 $

1,000

6,000

Cost of goods sold

Ending Inventory

13,600

6,000

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