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January 13, 2021Strategic Plan, Part 1: Environmental Scan
January 13, 2021Needing help answering
Hello,
I am to determine the dollar values for the inventory using the LIFO method. Im just a little confused about 2 things – see below:
Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016:
|
Date |
Activity |
Quantity |
Unit Price |
|
5/1 |
Beginning Inventory |
175 |
$10 |
|
5/5 |
Purchase |
200 |
$12 |
|
5/15 |
Purchase |
300 |
$15 |
|
5/25 |
Purchase |
150 |
$16 |
Sales were 545 units at $25. Using the LIFO method, determine the dollar values following for the month of May:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
So, Im pretty confidant in my answers for ending inventory, and cost of goods sold (I think). My question is regarding the cost of goods available for sale – would this dollar amount be the same as the ending inventory dollar amount? Im thinking this way because, as far as I understand, the ending inventory is the portion of the inventory still available for sale.