Calculating FIFO Inventory ValuesThe Mann Corporation began operations in 2015. Informationrelating to the company’s...Calculating...

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Accounting

Calculating FIFO Inventory Values
The Mann Corporation began operations in 2015. Informationrelating to the company’s purchases of inventory and sales ofproducts for 2015 and 2016 is presented below.
2015
January 1 Purchase 200 units @ $10 per unit
April 1 Sold 120 units @ $25 per unit
July 1 Purchase 100 units @ $14 per unit
September 1 Sold 130 units @ $25 per unit
2016
January 1 Purchase 100 units @ $16 per unit
April 1 Sold 80 units @ $30 per unit
July 1 Purchase 100 units @ $18 per unit
September 1 Sold 100 units @ $35 per unit
Calculate the FIFO cost of goods sold and ending inventory for2015 and 2016 assuming use of (a) the periodic method and (b) theperpetual method.
a. FIFO Periodic. Round to nearest whole number.
2015
Cost of goods sold $Answer
Ending inventory $Answer
2016
Cost of goods sold $Answer
Ending inventory $Answer
b. FIFO Perpetual. Round to nearest whole number.
2015
Cost of goods sold $Answer
Ending inventory $Answer
2016
Cost of goods sold $Answer
Ending inventory $Answer

2015
January 1	Purchase	200	units	@	$10	per unit
April 1	Sold	120	units	@	$25	per unit
July 1	Purchase	100	units	@	$14	per unit
September 1	Sold	130	units	@	$25	per unit

2016
January 1	Purchase	100	units	@	$16	per unit
April 1	Sold	80	units	@	$30	per unit
July 1	Purchase	100	units	@	$18	per unit
September 1	Sold	100	units	@	$35	per unit

2015
Cost of goods sold	$Answer
Ending inventory	$Answer

2016
Cost of goods sold	$Answer
Ending inventory	$Answer

2015
Cost of goods sold	$Answer
Ending inventory	$Answer

2016
Cost of goods sold	$Answer
Ending inventory	$Answer

Answer & Explanation Solved by verified expert

4.4 Ratings (899 Votes)

Basic Conceptual Note or Trick Cost of Goods Sold and Ending Inventory under FIFO method WILL BE SAME whether Periodic Method is in use or Perpetual Method is in use Hence answer for Requirement a and b will be SAME Working 2015 Sale See Answer

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In: AccountingCalculating FIFO Inventory ValuesThe Mann Corporation began operations in 2015. Informationrelating to the company’s...Calculating FIFO Inventory ValuesThe Mann Corporation began operations in 2015. Informationrelating to the company’s purchases of inventory and sales ofproducts for 2015 and 2016 is presented below.2015January 1Purchase200units@$10per unitApril 1Sold120units@$25per unitJuly 1Purchase100units@$14per unitSeptember 1Sold130units@$25per unit2016January 1Purchase100units@$16per unitApril 1Sold80units@$30per unitJuly 1Purchase100units@$18per unitSeptember 1Sold100units@$35per unitCalculate the FIFO cost of goods sold and ending inventory for2015 and 2016 assuming use of (a) the periodic method and (b) theperpetual method.a. FIFO Periodic. Round to nearest whole number.2015Cost of goods sold$AnswerEnding inventory$Answer2016Cost of goods sold$AnswerEnding inventory$Answerb. FIFO Perpetual. Round to nearest whole number.2015Cost of goods sold$AnswerEnding inventory$Answer2016Cost of goods sold$AnswerEnding inventory$Answer