Question

The following company purchases and sells collectors' coin sets. The company uses the LIFO inventory costing method. In the first two sections of the table below, each coin set is identified by its letter and its cost. The third section indicates when coin sets were sold.


Beginning Inventory Purchases during Year Sales during Year
A $200 B January 5 $202 January 15 1 coin set
C February 5 $203 May 15 1 coin set
D March 5 $208 June 15 1 coin set
E April 5 $213 September 15 1 coin set
F July 5 $216 October 15 1 coin set
G August 5 $216
H November 5 $223

Required:

For each inventory costing method given below, fill in the blanks to indicate the letter of the coin set which will be used to calculate either cost of goods sold or the cost of ending inventory.

Part a. Periodic Inventory System

Cost of Goods Sold = _____ + _____ + _____ + _____ + _____

Ending Inventory = _____ + _____ + _____

Part b. Perpetual Inventory System

Cost of Goods Sold = _____ + _____ + _____ + _____ + _____

Ending Inventory = _____ + _____ + _____

Answer

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