Purpose: This exercise will allow you to practice performing calculations to determine inventory cost under each of three costing (pricing) methods, using both the periodic and the perpetual systems.
The Griggs Company is a multi-product firm. Presented below is information concerning one of their products, Infusion-39:
|
Date
|
Transaction
|
Quantity
|
Cost
|
|
1/1
|
Beginning inventory
|
1,000
|
$12
|
|
2/4
|
Purchase
|
2,000
|
18
|
|
2/20
|
Sale
|
2,500
|
|
|
4/2
|
Purchase
|
3,000
|
22
|
|
11/4
|
Sale
|
2,000
|
|
Instructions
Compute the cost of the ending inventory, assuming Griggs uses:
(a) Periodic system, FIFO cost method.
(b) Perpetual system, FIFO cost method.
(c) Periodic system, LIFO cost method.
(d) Perpetual system, LIFO cost method.
(e) Periodic system, average-cost method.
(f) Perpetual system, moving-average-cost method.