Determine the amount that would be reported in ending merchandise inventory on

October

15 using the FIFO inventory costing method.

Oct. 2

Purchased 8 gallons @ $1.75 each

Oct. 6

Purchased 1 gallons @ $2.20 each

Oct. 8

Sold 3 gallons of milk to a customer

Oct. 13

Purchased 2 gallons @ $2.60 each

Oct. 14

Sold 4 gallons of milk to a customer

Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter all amounts to the nearest cent, $X.XX. Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Oct. 2	8	$1.75	$14.00				8	$1.75	$14.00
6	1	$2.20	$2.20				8	$1.75	$14.00
							1	$2.20	$2.20
8				3	$1.75	$5.25	5	$1.75	$8.75
							1	$2.20	$2.20
13	2	$2.60	$5.20				5	$1.75	$8.75
							1	$2.20	$2.20
							2	$2.60	$5.20
14				4	$1.75	$7.00	1	$1.75	$1.75
							1	$2.20	$2.20
							2	$2.60	$5.20
Totals	11		$21.40	7		$12.25	4		$9.15

Part 2

Requirement 2. Determine the amount that would be reported in ending merchandise inventory on

October

15 using the LIFO inventory costing method.

Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter all amounts to the nearest cent, $X.XX. Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Oct. 2
6
8
13
14
Totals