The Following Data Regarding Purchases and Sales of a Commodity

question 154

Essay

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:? $$\begin{array} { r l l } \text { June } 1 & \text { Balance } & 25 \text { units at } \$ 60 \\6 & \text { Sale } & 20 \text { units } \\8 & \text { Purchase } & 20 \text { units at } \$ 61 \\16 & \text { Sale } & 10 \text { units } \\20 & \text { Purchase } & 20 \text { units at } \$ 62 \\23 & \text { Sale } & 25 \text { units } \\30 & \text { Purchase } & 15 \text { units at } \$ 63\end{array}$$ Calculate the cost of the ending inventory at June 30, using
(a) the first-in, first-out
(FIFO) method and
(b) the last-in, first-out
(LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

---

Definitions:

Market Share

The percentage of an industry or market's total sales that is earned by a particular company over a specified time period.

Optimal Location

The most favourable geographical position for a business or facility based on factors like cost, accessibility, and market demand.

Firms Locate

The process by which businesses decide where to establish their operations, influenced by factors such as market access, costs, regulations, and infrastructure.

Capital

Capital in a business context represents the financial assets needed for operations, such as funds in bank accounts, inventory, buildings, and machinery.