A Company Uses the Periodic Inventory System, and the Following

question 151

Essay

A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit. The selling price for the merchandise is $11 per unit.
$\begin{array}{|l|l|r|r|r|}\hline & & \text { Units } & \text { Unit Cost } & \text { Total Cost } \\\hline 6 / 01 & \text { Inventory Balance } & 30 & \$ 3 & \$ 90 \\\hline 6 / 06 & \text { Purchase } & 70 & 4 & 280 \\\hline 6 / 11 & \text { Purchase } & 45 & 5 & 225 \\\hline 6 / 16 & \text { Purchase } & \underline{50} & 6 & 300 \\\hline & \text { Goods available } & \underline{195} & & \underline{1095} \\\hline 6 / 12 & \text { Sale } & 100 & & \\\hline 6 / 20 & \text { Sale } & \underline{60} & & \\\hline & \text { Goods sold } & \underline{160} & & \\\hline 6 / 31 & \text { Inventory Balance } & \underline{35} & &\\\hline \end{array}$
Required:
Determine the cost of the ending inventory and the cost of goods sold for June using the LIFO method.

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Definitions:

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses and holds information in its original sensory form for a very brief duration.

Short-Term Memory

A cognitive system with a limited capacity that is responsible for the temporary holding of information available for processing.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Atkinson-Shiffrin

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes it in terms of three stores: sensory memory, short-term memory, and long-term memory.