# Ballas Co. Periodic Inventory System FIFO And LIFO Methods

EX6-5:

Ballas Co. uses a periodic inventory system. Its records show the following for

the month of May, in which 68 units were sold.

UNITS UNIT COST TOTAL COST

May 1 Beg. Inventory

30

\$8

\$240

15 Purchases

25

\$ 11

\$275

24 Purchases 35

\$ 12

\$420

Totals

90

\$935

Compute the ending inventory at May 31 and cost of goods sold (COGS) using the FIFO

and LIFO methods. Show your work with “proof” of how COGS was calculated.

EX 6-6

Moath Company reports the following for the month of June. 800 units were

sold during the month.

UNITS

UNIT COST TOTAL COST

June 1 Beg Inventory

200

\$ 5

\$ 1,000

12 Purchases

400

\$ 6

\$ 2,400

23 Purchases

300

\$ 7

\$ 2,100

Compute the ending inventory and the cost of goods sold (COGS) under FIFO and LIFO

methods

EX 6-7:

Shawn Co. had 100 units in beginning inventory at a total cost of \$10,000.

The company purchased 200 units at a total cost of \$26,000. At the end of the year,

Shawn had 75 units in ending inventory.

Compute the cost of goods sold (COGS) under

1) FIFO 2) LIFO 3) AVERAGE COST